Advance Tax on Buying and Selling Shares Has Been Abolished: PSX

Pakistan Stock Exchange (PSX), in a notification on Tuesday, announced that advance tax on buying and selling of shares has been abolished with effect from March 01, 2019 following the approval of the supplementary Finance Bill 2019.

The PSX notification read that the tax on members (TREC holders) of the stock exchange in lieu of their commission under section 233A had been approved to be abolished with effect from March 1, 2019.

It said that the existing advance tax on purchase and sale value of shares traded in lieu of tax on the commission of 0.02 percent has been abolished.

However, capital value tax (CVT) on the purchase of shares of a public company listed on a registered stock exchange in Pakistan would be taxed at 0.01 percent of the purchase value, the notification added.

The notification further stated that all Trading Rights Entitlement Certificate (TREC) holders/shareholder are requested to note that the Finance Supplementary (Second amendment) act, 2019 has been published.