KARACHI: Members of PSX Stockbrokers Association (PSA) and other participants of Capital Market are dismayed over the neglect of the Capital Market by the Federal Government in the budget for FY 2020-2021, the PSX Stockbrokers Association press release said.
Exorbitant rates of capital gain tax (CGT), absence of distinction between short term gains and gains on long term investments, lack of tax-incentives for companies to get listed and patent errors in relevant income tax laws (taxation of gains on disposal of securities) are not only hampering new listings but are also frustrating investors to abandon the market.
Securities and Exchange Commission of Pakistan (SECP), itself an arm of the Federal Govt. and the Apex Regulator of the corporate world including Capital Market had many a times explained the predicament faced by the Capital Market to the FBR at the highest level. It is unusual and unfortunate that despite the Commission s pointing out, the distortions in tax laws hurting the Capital Market and other needs of the market, have not been attended to by FBR.
In the days to come, without resolution of the policy issues hurting it, the Capital Market may not be able to attract either the new companies or the new investors. Federal Govt., especially Dr Abdul Hafeez Sheikh, the Honorable Advisor to the Prime Minister on Finance, Revenue and Economic Affairs is requested to invite the representatives of PSX Stockbrokers Association for discussion and resolution of grievances of the Capital Market.
It is hoped and prayed that the Federal Govt. would utilise the Capital Market for early revival of Economy by attending to the issues faced by it.