Budget makers are examining a proposal to impose a lower-rate transaction tax on the buying and selling of shares.
According to reports circulating in the stock market, the government is considering a 0.1 percent transaction tax on share purchases and sales to generate additional revenue from stock market activity.
If such a proposal is under consideration, it would require approval from the Prime Minister during the upcoming Federal Cabinet meeting scheduled for June 5.
On Monday, investors adopted a cautious approach at the Pakistan Stock Exchange (PSX) amid unconfirmed reports regarding the proposed tax on stock market transactions.
A senior Karachi-based broker told ProPakistani that reports of such a tax remain speculative and are currently nothing more than market rumors.
At present, Capital Gains Tax (CGT) is charged on the disposal of listed securities. Last year, CGT collections amounted to approximately Rs. 72 billion.
In addition to CGT, stock market participants are also subject to several other taxes, including sales tax on services imposed by provincial authorities and the Islamabad Capital Territory, super tax, tax on dividends, and tax on bonus shares.
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