Finance Minister Ishaq Dar has given indication not to increase tax ratio including capital gains tax on shares business.
Sources said that rumors on enhancement of CGT ratio by 7.5 percent are afloat while on the other hand indication had been given by the finance minister to some senior members of the Karachi Stock Exchange (KSE) that capital gains tax and other taxes would not be scaled up in the budget on the financial year 2014-15.
KSE former president Arif Habib has confirmed that the finance minister had given clear indication on non-raising capital gains tax ration in the upcoming budget. Offers amounting to Rs 150 billion are existing in connection with privatization of UBL, OGDCL and PPL. Expanding the privatization plan is must to make investment process attractive. The government would have to integrate departments with taxable income into tax net in next budget rather than shifting more burden on the shoulders of those who were making regular payment of utility bills, he stressed. He demanded the income tax be clamped on the sale of shares instead of bonus issue of stock dividends and mutual funds.
