A delegation of the Pakistan Stock Brokers Association (PSBA) Tuesday held a meeting with Senator Saleem Mandviwalla, Chairman of the Senate Standing Committee on Finance and Revenue.
The delegation comprised of Munir Khanani – Chairman, Zahid Latif Khan – Senior Vice Chairman, and Bilal Farooq Zardi – Chief Executive Officer & Secretary General.
The purpose of the meeting was to present key proposals aimed at enhancing market participation, addressing critical anomalies, and rebuilding investor confidence as well as that of listed companies.
The proposals included recommendations to rationalize taxes on brokers and shares trading.
- Change in the Definition of the Term Securities – Section 37A of the Income Tax Ordinance, 2001. Brokers demand to impose Capital Gain Tax on basis of the holding period of shares instead 29 percent.
- Tax on Brokerage and Commission – Section 233 of the Income Tax Ordinance, 2001. The tax should be reduced from 12 percent to 3 percent like tax on other services.
- Introduction of Tax Sahulat Account.
During the meeting, the senator expressed his willingness to collaborate with PSBA and the stock broker community to shape policies, procedures, and a tax framework that fosters investment in Pakistan’s Capital Market.
Speaking at the meeting, the PSBA delegation expressed their satisfaction with Mandviwalla’s positive response. The proposals aim to create a dynamic and robust capital market, which would unlock new investment opportunities and drive economic growth.
Additionally, these initiatives will assist the government in accelerating economic progress, attracting local and foreign investments, and creating employment opportunities for the people.
