The federal government is scheduled to present the budget for the fiscal year 2025–26 today, introducing a significant new tax measure. A 1% tax is set to be levied on capital assets valued at over Rs. 1 billion.
According to official sources, capital assets include all kinds of property—both financial and non-financial—excluding immovable assets, as declared in the wealth statement as of 30th June of the relevant tax year.
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The “net value of capital assets” refers to the aggregate value of capital assets (excluding immovable assets) minus the total value of personal liabilities, based on the wealth statement filed by a person on 30th June of the same tax year.
However, certain assets will be excluded from this calculation, including:
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Business capital and related business liabilities, except for investments in shares and stocks.
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Assets already subject to tax under Section 8 of the Finance Act 2022.
The federal cabinet is expected to meet shortly to formally approve the budget.
