THE property owners of DHA Karachi who have been ‘A’ lease holders since 1990 are being told to pay Capital Value Tax as well as advance tax when they want to get the registration of ‘B’ Lease of the property by the sub-registrar.

According to the Sindh Finance Act 2010, the CVT is applicable on the acquirement of the property. People who are ‘A’ lease holders should be exempted from paying the CVT and advance tax as there is no sale and purchase involved. It is only a change of document from ‘A’ to ‘B’ lease without any transfer or change of ownership involved.

This is unfair in the light of the SRO30(I)/2015 by the FBR and Sindh Revenue Board orders, which clearly state that the above-mentioned taxes are to be collected only in case of purchase or transfer of property and, therefore, are not leviable on existing lease holders of ‘A’ lease.

The Sindh government and Federal Board of Revenue should explain this anomaly.

A Citizen

Karachi

Published in Dawn, November 12th, 2018