PSX wants govt to review CGT rates

KARACHI: The Pakis­tan Stock Excha­nge (PSX) asked the government on Thursday to align the rates of capital gains tax (CGT) on the disposal of shares with those on the sale of immovable property.

In its proposals for the 2022-23 budget, the only stock exchange of the country asked the finance ministry as well as the corporate regulator and the Federal Board of Revenue to eliminate the tax-driven distortion between different asset classes.

In addition, it asked the government to impose CGT on all derivates and future contracts traded on the PSX in line with that imposed on future commodity contracts traded on the Pakistan Mercantile Exchange.

The national bourse submitted 11 budgetary proposals in total, including the introduction of registered savings and investment accounts and individual savings account. These schemes will help channel capital that’s currently invested in unproductive areas and from the large undocumented sector into productive parts of the economy, it said.

Another proposal by the PSX related to the grandfather tax treatment of companies when they apply for listings on the exchange. It means no new cases for past tax returns should be opened, except for such pending cases in which proceedings have already been initiated.

It asked the government to enhance the tax credit for listed small and medium enterprises (SMEs).