GOVERNMENT OF PAKISTAN

REVENUE DIVISION

CENTRAL BOARD OF REVENUE

C.No.1(5)WT/99   

 Islamabad the 6th July, 1999.

CIRCULAR NO.04 OF 1999

(WEALTH TAX)

Subject:- FINANCE ACT, 1999 – EXPLANATION OF PROVISIONS RELATING TO WEALTH TAX.

Amendments made in the Wealth-tax Act, 1963, through Finance Act, 1999, are explained as under:-

  1. DEFINITION OF CERTAIN WEALTH TAX AUTHORITIES
    2.

The clauses (8), (10), (15) & (20) of sub-section (1) of Section 2 of Wealth Tax Act, 1963, have been amended, to incorporate in the law, the definition of Director General/Director/Additional Director/Deputy Director and Assistant Director of Intelligence and Investigation.

2. LIMIT FOR FILING OF WEALTH TAX RETURN ALONGWITH INCOME TAX RETURN

Under clause (b) of sub-section (1) of section 14 of the Wealth Tax Act, 1963, a person, whose declared income for the relevant year or the last declared or assessed income is one hundred thousand rupees or more, was required to file wealth tax return alongwith income tax return. Now this limit has been raised from one hundred thousand rupees to two hundred thousand rupees.

3. ADVANCE WEALTH TAX ON OWNERS OF CERTAIN MOTOR VEHICLES

At present, advance wealth tax under section 14D of the Wealth Tax Act, 1963, is collected on motor vehicles of engine capacity exceeding 1599CC. Through Finance Act, 1999, this limit has been reduced to 1500CC. Now the advance wealth tax u/s 14D shall be payable on motor vehicles of engine capacity of 1500CC and above, at the following rates:-

Engine Capacity Tax

1500CC to 2000CC Rs.10,000 per annum

                    2001CC and above Rs.20,000 per annum

However, the vehicles which have been manufactured more than seven years earlier would remain exempt.

4. STREAMLINING OF APPEAL FEES

Section 23, 24 and 25 of the Wealth Tax Act, 1963, have been amended to rationalize the rates of appeal and revision fees. The new rates are as under:-

(i)

Appeal before the Appellate Additional Commissioner / Commissioner (Appeals)

Rs.1000/- or 10% of the tax levied, whichever is less. Where no tax is levied the fee will be Rs.1000/-

(ii)

Revision before Commissioner Wealth-tax.

Rs.1000/- or 10% of the tax levied, Whichever is less. Where no tax is Levied the fee will be Rs.1000/-.

(iii)

Appeal before the Income Tax Appellate Tribunal

Rs.2500/- or 10% of the tax levied, whichever is less. Where no tax is Levied the fee will be Rs.2500/-

  1. EXEMPTION TO HOUSES/APARTMENTS CONSTRUCTED UNDER PRIME MINISTER’S PROGRAME FOR ECONOMIC REVIVAL (HOUSING SECTOR)
    2.

    A new clause (32) has been inserted in Part-I of the Second Schedule to the wealth Tax Act, 1963, wherein exemption from payment of Wealth-Tax has been allowed for a period of five years in respect of houses built on land area not exceeding six marlas (one hundred fifty square yards) or apartments with covered area not exceeding twelve hundred square feet, constructed under Prime Minister’s Programme for Economic Revival (Housing Sector).

  2. The aforementioned provisions will take effect from the first day of July, 1999.

(M.SHAHID ZAHEER)

Secretary (Wealth-tax)

Phone No.9204279