Speaking at a press conference, Karachi Stock Exchange Managing Director, Adnan Afridi said that Pakistan’s new government decided not to change its current tax regime for the capital market. The current regulations will help to generate more revenue on listed shares than imposing new capital gains tax. Mr. Afridi said that after a meeting between the Karachi stock exchange delegation and the Finance Minister and members of Economic Advisory Council (EAC), it has been decided that the state owned companies will start investing in the equity market from next month.
Business Recorder reports:
He said that these corporations, companies and entities such as EOBI, State Life Insurance Corporation, port authorities, OGDCL, PIA, Pakistan Steel Mill and others will invest up to 25 percent of their retirement and long-term funds in the equity markets in a phased manner.
He welcomed the government decision to continue with the on-going incentives for the capital market including extension in capital gain tax (CGT) exemption for another two years. He pointed out that presently the stock market players are paying six direct taxes to the tune of Rs 5 billion.
Mr. Afridi said that the new government of Pakistan is going to introduce a new three-year capital market policy in the next three months. The decision has been taken in the face of declining foreign investment to a negative $84 million from $1 billion in 2007. The new policy will mainly focus on tax reforms, promotion of new listings, integration of capital market with the national economy and other areas to build up a healthy capital market in the long term.
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