Official sources told Business Recorder on Wednesday that the Cabinet in its meeting on June 5 held to approve the 2006-07 budget had approved the CBR proposal regarding imposition of CVT on property, besides extending its coverage to suburban areas.
"CVT should be imposed at 2 percent on purchase of urban and suburban immovable properties exceeding 500 sq yards, one kanal and above. In case, the value is not recorded, CVT should be collected at Rs 50 per sq yard," sources quoted the Cabinet as directing CBR.
In another move, the Cabinet asked the State Bank of Pakistan to look into complaints received from politicians and lawyers that the leasing cos and credit card issuing banks were denying these two banking products to them.
Sources said that the SBP has also been directed to introduce student loan scheme, adding that special incentive package for setting up universities, technical training and research institute, would also cover schools, colleges, vocational and all training institutes.
The Cabinet also asked for collection of utility bills through one-window in all banks, and in one of the clarifications SBP Governor said that all banks have been instructed to accept 'basic accounts' free of charge.
They said the Federal Cabinet rejected CBR proposal in which Rs 500 as fixed GST had been proposed on old and used computer monitors, adding that some Cabinet members said that with the imposition of GST monitors prices would increase.
According to sources, this idea was floated by CBR on the proposal of television manufacturers who said that sale of used monitors negatively impacted their business.
Sources said that the Cabinet decided that petroleum development levy (PDL), a major source of budgetary revenue in the past, would no longer form part of government revenue, which the Cabinet believes is change in the policy.
According to sources, the share of provinces in divisible taxes was raised from 37.5 percent to 41.5 percent, which would gradually increase to 46.26 percent within five years, adding that total transfers to the provinces were estimated at Rs 406 billion.It was also proposed that purchase of transformers for agriculture tubewells from the open market be allowed.