06-03-2008, 08:44 PM
'Luxury tax' on vehicles, property to be introduced
SOHAIL SARFRAZ
ISLAMABAD (June 03 2008): The government may introduce a "luxury tax" in the upcoming budget to tax luxurious items like vehicles, property of the elite class of Pakistan. It is learnt on Monday that the tax managers are seriously working on the proposal of levying "luxury tax" at some lower rate in the budget (2008-2009).
The "luxury tax" could be levied on the big houses and high CC cars depending on the size of the movable and immovable property. If the government approves this levy, it would be a unique kind of tax in Pakistan to be levied on the elite class.
The concept of "luxury tax" clearly indicates that the government seems no more interested in restoration of wealth tax. During the last budget meetings, it was discussed to tax the rich class of the society. However, the FBR is working on new policy to impose taxes on luxury goods and services rendered by the rich people.
The new tax policy is focusing on consumption items of the rich segment of the society. The board is actively going through the list of luxury items heavily consumed by rich people for analysing the ratio of taxes being paid on them.
Copyright Business Recorder, 2008
SOHAIL SARFRAZ
ISLAMABAD (June 03 2008): The government may introduce a "luxury tax" in the upcoming budget to tax luxurious items like vehicles, property of the elite class of Pakistan. It is learnt on Monday that the tax managers are seriously working on the proposal of levying "luxury tax" at some lower rate in the budget (2008-2009).
The "luxury tax" could be levied on the big houses and high CC cars depending on the size of the movable and immovable property. If the government approves this levy, it would be a unique kind of tax in Pakistan to be levied on the elite class.
The concept of "luxury tax" clearly indicates that the government seems no more interested in restoration of wealth tax. During the last budget meetings, it was discussed to tax the rich class of the society. However, the FBR is working on new policy to impose taxes on luxury goods and services rendered by the rich people.
The new tax policy is focusing on consumption items of the rich segment of the society. The board is actively going through the list of luxury items heavily consumed by rich people for analysing the ratio of taxes being paid on them.
Copyright Business Recorder, 2008