CGT rules to be finalized in next two weeks

RECORDER REPORT

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Muhammad Ali said on Tuesday that the capital gains tax (CGT) rules would be finalized within next two weeks and the National Clearing Company of Pakistan Limited (NCCPL) would start deducing the tax as soon as the CGT rules would be notified by the Federal Board of Revenue (FBR).

Addressing a press conference here on Tuesday, SECP Chairman said that the CGT law has been in place. The Law and Justice Division has vetted the CGT rules and FBR will notify the same in coming days. The National Clearing Company of Pakistan Limited (NCCPL) would not be in a position to deduct the CGT unless or until the CGT rules are not being implemented. As soon as the CGT rules would be notified by the SECP, the NCCPL would start deducing the tax on stock market transactions.

The FBR will publish the draft CGT rules for the information of all persons and draft will be taken into consideration after 15 days of its publication in the official Gazette. The CGT rules would be analyzed by all the stakeholders and any suggestion, which may be received from any person, in respect of the said draft shall be considered by the Federal Board of Revenue.

Responding to a query, Muhammad Ali said that the CGT exemption is not available on the stock market transactions. This would be further clarified in the CGT rules to be notified by the Board.

SECP Chairman was confident that the implementation of the CGT rules would have a positive impact on the market as these rules would bring clarity in the procedure for the collection of the CGT transactions. A difference in investment would be visible after implementation of the CGT rules and interest of the overall investors would be increased in view of a clear procedure on the said issue.

The stock market is waiting for the CGT rules to have a clear implementation procedure on the stock market transactions, he added.