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COVID levy on wealth of individuals, AOPs under consideration

COVID levy on wealth of individuals, AOPs under consideration

ISLAMABAD: Government is considering to impose COVID levy, which may be on the wealth of individuals and Association of Persons (AOPs), sources said.

The sources said that the levy may be collected up to one percent of Rs100 million wealth declared by individuals / AOPs.

The government may introduce this levy through Finance Bill, 2020.

However, in case the income tax liability is more than the proposed levy then the chargeability of tax may under normal tax regime.

Further, this levy may not be imposed on corporate entities.

The COVID tax may be imposed as was introduced through Income Support Levy in 2013.

The sources said that the revenue collection of the Federal Board of Revenue (FBR) was adversely affected due to coronaviurs. They said that in the present scenario the government was not intending to burden the taxpayers, especially business concerns, through introduction of new taxes.

However, through this levy may be utilities for the support the efforts to combat against the pandemic.

The sources said that the estimated amount to be generated through this levy was may be around Rs30 billion.