Minister for Finance and Revenue Shaukat Tarin has said that the government is considering to introduce a new tax regime for the Pakistan Stock Exchange (PSX), which is in accordance with the changing economic environment.
The finance minister said this while holding a meeting on Monday with Managing Director/ CEO Pakistan Stock Exchange Farrukh H Khan to review proposals for the federal budget 2021-22.
The finance minister said the government is strongly committed to strengthening the financial markets and is ready to adopt measures that could mobilise capital to more productive sectors.
The PSX MD gave a detailed presentation on the huge impact of stock markets on wealth creation and mobilisation of capital. He said that a broad-based capital market helps achieve important economic and social objectives like increasing the number of tax payers, optimising savings and investment rates, and reducing wealth inequalities. Tax measures are an important policy tool to increase investments and savings in the economy and to stay competitive with other markets, he said.
The managing director submitted proposals to align rates of capital gain tax on disposal of securities in line with regional practices, rationalisation of tax rates for companies listed on the stock exchange, enhanced tax credit for listed small and medium enterprises, unlocking the potential of private funds and many other suggestions that will help broadening the tax base/ revenue collection.
The finance minister appreciated the recommendations from the MD. He welcomed the proposals and assured that these will be given due consideration in the upcoming budget.
Adviser to PM on Austerity and Institutional Reforms Dr Ishrat Hussain, SAPM on Finance and Revenue Dr Waqar Masood, chairman Federal Board of Revenue and secretary finance were also present during the meeting.
