ISLAMABAD: The government has announced that new or higher rate of capital gain tax will not be applicable on securities purchased up to June 30, 2015.
Through Finance Bill 2017, applicable tax rates, based on holding period, on capital gains arising on disposal of securities are proposed to be simplified and flat rates of tax of 15 percent for filers and 20 percent for non-filers, respectively for tax year 2018.
It is further proposed that gain on securities acquired before July 01, 2013 will be taxable at zero percent.
In his speech to wind up the budget proposals, Finance Minister Senator Mohammad Ishaq Dar said that the proposed rate of capital gain tax through Finance Bill 2017 would be applicable on the securities purchased from July 01, 2016. However, the securities purchased prior to this the tax rate would be same as was applicable at that time.
It is further decided that for the promotion of Pakistan Stock Exchange and Pakistan Mercantile Exchange, the income tax rate had been reduced to two percent from 8 percent.
The finance minister also announced that for the promotion of secondary market the tax rate on listed derivatives had been reduced to five percent from 15 percent.