NCCPL CEO spells out CGT rules
National Clearing Company of Pakistan Limited (NCCPL) has developed a capital gain tax system (CGT system) to compute, determine, collect and deposit CGT from disposal of listed securities. This was stated by the CEO of NCCPL, Muhammad Lukman while briefing media on the CGT rules and procedure of its collection. The chief operating officer of NCCPL Badiuddin Akbar was also present on the occasion.
Copyright Business Recorder, 2012
Lukman announced that CGT system has been implemented effective September 13, 2012 and the first reports showing details of CGT computation for trades/transactions executed and settled during the period April 24, 2012 to June 30, 2012 have been disseminated to the market participants so as to enable them to verify the same accordingly.
"The aggregate net amount of CGT, for the above period would be collected on Tuesday, September 18, 2012," he said. However, details of CGT computation for the period from July 01, 2012 onwards will be provided to market participants by the end of September 2012," he added.
He said that the new CGT regime would provide great ease of calculation and hassle-free preparation of income tax returns, based on the certificate provided by NCCPL, to investors and they would be exempted from the record maintenance requirement. He pointed out that it is the first time in the history of taxation system of Pakistan that an independent organisation has been assigned such a unique role. "At this auspicious occasion, we wish to place on record that NCCPL has been mandated such role in recognition of its expertise in providing various automated business solutions to the capital market of Pakistan," he added.
"We appreciate the initiative taken by the Chairman Securities and Exchange Commission of Pakistan (SECP) to revive CGT regime so as to achieve the government's objectives to generate additional revenues as well as to relieve investors from the complex calculation and record retention," he said.
He also acknowledged that SECP has played an instrumental role in drafting requisite amendments to the Income Tax laws and their guidance and patronage throughout the project. "We also acknowledge the confidence reposed by Federal Board of Revenue in the NCCPL system and processes in assigning such a critical role," he said.
He said the role of NCCPL Board during the entire project is also highly appreciated for their all out support and direction to the right path. He thanked the management of Central Depository Company for their continued support and in-depth involvement in the provision of relevant CDS information. The role of Karachi Stock Exchange Board also remained commendable during the said project, he said.
The development of a project of this magnitude would not have been possible without the continued input of professional skills and dedicated and onerous efforts from all the team members of NCCPL involved right from drafting requisite amendments in the Income Tax laws along with finalisation of NCCPL legal framework and system implementation. "We feel that such project is part of our continuous contribution to develop capital market of Pakistan," he said.