ISLAMABAD - Federal Board of Revenue (FBR) Saturday made some amendments in the scope of Capital Value Tax, rates of CVT for immovable property and in taxation on purchase of shares through the Finance Act '09. According to a circular, through amendments in sub-section (1) of section 7 Finance Act 1989, the scope of levying CVT has been extended by bringing the renewal of lease or any premium paid thereon in respect of immoveable property in the ambit of chargeability of CVT. The CVT is payable with effect from July 1, 2009 on the renewal of lease or any premium paid thereon. While the share of a public company in any registered stock exchange in Pakistan by a resident person has been excluded from the payment of CVT on the trading of the said shares from the same date. The circular further said that paragraph (CA) of sub-section (2) of section 7 has been substituted as 4pc of the recorded value of CVT is leviable on immovable property from July 1, 2009, while where the value of immovable property is not recorded then CVT would be charged as Rs 100 per square yard of the landed area. The built-up property has been taxed at the rate of Rs 10 per square feet of the constructed area in addition to the value worked out above. The circular states that the commercial immovable properties situated in urban areas would also be taxed with the same ratio. In case of residential flats, tax on the recorded value of the flat would remain the same, four per cent, while in case the value is not recorded, Rs 100 per square yards would be collected for the covered area. As per circular, Capital Value Tax on shares traded on the stock exchanges has been withdrawn from July 1, 2009 as previously a registered stock exchange was obliged to collect CVT at the rate of 0.01 per cent. in transactions of the purchase value of any modaraba certificates or any instrument of redeemable capital as defined in the companies ordinance 1984, or shares of a public company listed on a registered stock exchange on Pakistan transacted through its automated trading system.