Advance tax on stock trading to be reduced: Sindh Governor

The governor says advance tax would be reduced to zero with the increase in market volume

KARACHI (Dunya News) – The government has agreed to reduce advance tax on sale and purchase of shares from 0.02 percent to 0.01 percent and this will be proposed in a money bill to be presented before the parliament for the approval.

Sindh Governor Imran Ismail during his first visit to PSX Stockbrokers Association on Friday assured that the suggestions given by the stock brokers association will be addressed adequately and some of them would be introduced in the upcoming money bill like reduction in advance tax to 0.1 percent.

He said that the recommendations of the brokers have been forwarded to Prime Minister Imran Khan and it has also been discussed with the Finance Minister Asad Umar. Finance Minister Asad Umar in recent visit also assured the stock brokers that all the grievances of the investors would be addressed amicably.

The governor also said that the advance tax would be reduced further to zero percent with the increase in market volume.

The governor shared his perspective regarding the stock market and assured the house that the government will take measures for the development of the capital market and to promote investment in stock market, the investors will be encouraged.

Ease of doing business will be promoted in collaboration with regulatory bodies and the concerns and issues will be resolved in due course.

Cost of doing business, which is affecting the market, will also be reduced as the proposals have already been presented before the federation by the delegation of PSA.

The meeting was led by the President of PSA, Hamad Nazir Kehar and was attended by Managing Committee of PSA and members of the Association accompanied with leading market participants.

Adil Ghaffar, Secretary General of PSA welcomed the governor and thanked him for his visit and to have interaction with the members of the association.

He expressed his views for the development of the Capital Market.

The secretary general and President of PSA highlighted the issues being faced by the brokers of Pakistan Stock Exchange (PSX) and requested the office of Honorable Governor to take up the issues with Federation.

Stock Market being fully documented and tax compliant should be promoted.

Unfortunately the investors in the Capital Market are subject to unreasonable tax burden which has reduced the turnover to merely 10 percent compare to the previous times.

PSA has made the representation to Prime Minister Imran Khan and specifically Finance Minister Asad Umer to address the concerns and issues of the brokers and investors.

Kehar thanked the Honorable Guest and stated that we look forward to you and your office to plead our case with the Federal Government. We are seeking rationalization of unfair taxes on the investors. We look forward to your support in this matter.

With a vote of thanks by Humayun Javed, Committee Member PSA, the meeting concluded.

In closing, the house expressed the gratitude to his excellence and thanked Imran Ismail, Governor Sindh, for sparing time out of his busy schedule and for his support.