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Presidential Ordinance on modify CGT regime expected this month.

ISLAMABAD -- The modify Capital Gains Tax (CGT) regime on Stock Exchanges is likely to be implemented during this month following promulgation of the Presidential Ordinance, said an official, requesting anonymity.

Earlier, the Securities Exchange Commission of Pakistan (SECP) was expecting to make changes in the procedure of the tax from April 1st 2012 through presidential ordinance which, however, could be issued this month.

However, an official said that after the issuance of Presidential Ordinance, revised Capital Gains Tax regime would be implemented automatically.

"All preparations for CGT collection have already been made by the National Clearing Company of Pakistan Limited (NCCPL), said the official, adding that under the draft of the Eighth Schedule, the proposed Schedule has also explained the responsibility and obligation of NCCPL.

The proposals of SECP regarding capital gains tax, including demand for amnesty against unexplained income information and had proposed that documentation was not available to substantiate the gains made from capital market transaction during the exempt period, therefore applicability of Income Tax Ordinance, 2001 about unexplained income or assets should be deferred for fund invested in capital markets till June 30, 2014.

SECP proposed that to simplify the calculation and achieve smooth implementation of capital gains tax, the rate should be frozen at existing level till June 30, 2014.

Federal Finance Minister Dr Abdul Hafeez Shaikh had announced the change in the system of the collection of capital gains tax in early this year.
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Publication:The Frontier Star (Northwest Frontier Province, Pakistan)
Date:Apr 21, 2012
Words:239
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