KARACHI: Federal Board of Revenue (FBR) has been urged to reduce capital gain tax on securities to 10 percent from 15 percent in case of income tax return filers.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2018/2019, proposed that the rate of capital gain should be reduced from the proposed 15 percent to 10 percent for filers.
It further proposed that this change should be made applicable to all the purchases made on or after July 01, 2016 on the principle that the changes should be prospective and not retrospective in its applicability.
The FPCCI also pointed out the issue of collections of taxes by stock exchange. It said the Finance Act, 2017 substituted sub-section (2) whereby tax collected at source would be final tax on such transaction which presently is an adjustable tax.
Tax under this section is required to be collected on:
- a) From member of stock Exchange on purchase of shares in lieu of tax on the commission earned by such members; and
- b) From the members of Stock Exchange on sale of shares in lieu of tax on the commission earned by such members.
It is proposed to withdrawn the full and final treatment of advance tax collected in lieu of TREC Holders’ commission at the rate of 0.2 percent of the value of purchase and sales of securities under section 233A of the Ordinance and the rate of advance tax be kept at 0.01 percent.
