Government may abolish advance tax on the sale and purchase of Pakistan Stock Exchange shares

January 12, 2019

Photo: AFP

The PTI government is all set to announce various adjustments to its economic policies and tax rates in the upcoming mini budget on January 23.

According to sources in the Federal Board of Revenue, a number of tax proposals have been prepared to give relief to the investors of the Capital Market. The government is may abolish 0.02% advance tax on the sale and purchase of shares, the source told SAMAA Digital.

A curtail over the regulation of brokers to promote equity investment and rationalisation of taxation of holding companies on inter-corporate dividends is also reportedly proposed.

In order to generate additional revenue, the government is reportedly planning to list the GoP and CPEC infrastructure projects on the Pakistan Stock Exchange.

The rationalisation of Capital Gains Tax on equities in line with the real estate sector is also proposed besides carrying forward capital losses of up to three years, the FBR source said.

In the back drop of a massive shortfall in the tax revenue during the first six months of the ongoing fiscal year, the government may generate additional revenue of more than Rs150 billion by introducing various tax measures.

Related: Government to present mini budget on January 23, announces Finance Minister Asad Umar

The imposition of additional taxes on the import of luxury vehicles of 1600 cc and above and various luxury items, including mobile phones and cigarettes is also under consideration.

Earlier today, Finance Minister Asad Umar said the government wants to improve the ease of doing business in the country and incentivise investments. He announced that the Finance Bill or mini budget will be presented on January 23.

Speaking to the business community in Karachi, he emphasised the importance of the private sector in the country’s economy. The private sector runs the economy but it needs to see improvement to increase its investment, he said.

Speaking about the situation before his government came into power, he said it was difficult to invest in Pakistan. Taxes and electricity prices were barriers to investment, he said, adding that the way tax was being charged was creating problems for investors.

Umar claimed that the proposed mini budget will be business friendly.

 
 
 
 
 


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