The federal government is mulling a 3 per cent reduction in the Capital Gains Tax to facilitate the Pakistan Stock Exchange in the budget for the upcoming financial year 2021-22.

If reduced, the traders will have to pay a 12 per cent tax on capital gains instead of 15 per cent. The government may also increase the time period for the capital gains tax payment to two-three years.

This development came a day after a meeting between the Pakistan Stock Exchange (PSX) managing director and Finance Minister Shaukat Tarin in Islamabad to review the budget proposals.

“Lower taxes will improve investor returns and benefit market in terms of attractive investment and more activity, Khurram Schezad, CEO of Alpha Beta Core said in a phone interview from Karachi. “PSX is already quite effective in terms of share prices compared to regional markets,” he added.

Similarly, the federal government is also planning to improve the trading experience at the Pakistan Mercantile Exchange. It is likely to introduce a trading facility at the mercantile exchange for the commodity market. According to the proposals under review, the Future Commodity Contract may get an exemption from the Withholding Tax (WHT).

The investors at the mercantile exchange will also be allowed to trade on the basis of electronic warehousing receipts as per the proposals.

Farhan Sharif also contributed to this report from Karachi.

LEAVE A REPLY

Please enter your comment!
Please enter your name here