KSE announces withdrawal of CVT, revision of flood surcharge

KARACHI: Karachi Stock Exchange (KSE) said Tuesday that capital value tax (CVT) on the purchase of modaraba certificates and listed instrument of redeemable capital, has been withdrawn from July 1, 2011 through Finance Bill/Act 2011.

In its notice, KSE said that 15 percent flood surcharge on tax payable levied through Income Tax (Amendment) Ordinance 2011 is no more applicable effective July 1, 2011 and onward.

Hence, the rates of taxes currently collected by the exchange have been revised as under to exclude the effect of levy of 15 percent flood surcharge on the tax payable.

KSE said that the advance tax on purchase and sale value of traded shares, advance tax on trade value of shares has been revised from 0.0115 percent of purchase, sale and trade value to 0.01 percent effective July 1, 2011.

Similarly, advance tax in respect of financing of carry over trade in share business has been revised from 11.5 percent of carry over value to 10 percent of carry over charge.

Copyright APP (Associated Press of Pakistan), 2011