PSX against tax-driven distortions in asset classes

Pakistan Stock Exchange (PSX) has submitted tax proposals to the Ministry of Finance (MoF) and the Federal Board of Revenue (FBR) for consideration in the federal budget for fiscal year 2024-25, submitting that the government should align rates of capital gains tax (CGT) on the sale of stocks with those applicable to the sale of property and real estate. PSX said it was important to remove the tax-driven distortions amongst different asset classes to create a level playing field. Essentially, the tax on capital gains on listed securities should be uniform, in line with the tax on real estate and other classes of assets. “Therefore, the PSX proposes that CGT rates on listed securities be brought in line with the CGT on the sale of immovable property.” Besides, the CGT on all derivatives and future contracts traded on PSX should be in line with the future commodity contracts traded at the Pakistan Mercantile Exchange (PMEX).