Early disposal of govt debt securities: FBR to levy 20% capital gains tax

ISLAMABAD: The Federal Board of Revenue (FBR) will apply 20 percent tax on capital gains on early disposal of debt securities of federal government within specified period of six months.

Through a income tax circular, the FBR has explained that prior to enactment of Finance Act, 2025, the capital gain arising to non-resident person having no permanent establishment in Pakistan invested through Special Convertible Rupee Account (SCRA) on debt securities of the Federal Government was charge to tax at the rate of 10% without any holding period.

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Now the tax rate of 10% will apply on capital gains on disposal of debt securities which have been held for a period of more than six months. `

In case of early disposal within specified period of six months, tax rate of 20 percent will apply on capital gains arising from such disposal, FBR added.

Copyright Business Recorder, 2025