ISLAMABAD: The government has withdrawn Final Tax Regime (FTR) for stock brokers for the purpose of taxation on commission earned by them. The proposal has been presented through Finance Bill, 2019 before the Parliament.
In the budget 2019/2020 the government has taken several measures to plug loopholes of those avenues which were promoting black economy.
The elimination of FTR for stock brokers was also part of it. Now the tax brokerage commission would become under minimum tax regime.
The present government through Finance Supplementary (Second Amendment) Act, 2019 allowed the FTR on brokerage commission on the demand of stock brokers.
However, the ongoing review of Financial Action Task Force (FATF) regarding money laundering and black money the government had no choice but to withdraw FTR and presumptive tax regime.
With the proposed elimination of the FTR the brokers will liable to provide details of investors from whom they drive brokerage income.
Besides, stock brokers would also require to file complete income tax returns providing all details of their business transactions.