Govt Likely to Impose Tax on Capital Assets Exceeding Rs. 1 Billion in Value

The federal government is presenting the budget for FY 2025-26 today. The government is set to impose a 1% tax on capital assets exceeding Rs. 1 billion in value. According to sources, capital asset means property of any kind, including financial and non-financial assets other than immovable assets held by a person as on 30th June of the relevant tax year and declared in the wealth statement. Net value of capital assets means the excess of the aggregate value of capital assets, excluding immovable assets, over and above the aggregate value of all personal liability declared by a person in his wealth statement filed on 30th June of the relevant tax year. The following capital assets shall be excluded for the purpose of computing net value of capital assets by a person a) Business capital, including business liability other than investment in shares and stocks Assets chargeable to tax under section 8 of the  Finance Act 2022. The cabinet is expected to meet shortly and will give formal approval to the budget.