The National Clearing Company of Pakistan Limited (NCCPL) has announced its plan to collect Capital Gain Tax (CGT) for the month of January 2019 from stock brokers on February 27, 2019.
In a notification issued on Tuesday, the NCCPL outlined the procedures and deadlines for the collection of CGT, emphasizing the importance of compliance by all Clearing Members.
According to the notification, the aggregate amount of CGT arising from the disposal of shares at the Pakistan Stock Exchange (PSX) for the period January 01, 2019, to January 31, 2019, will be collected on Wednesday, February 27, 2019. The collection will take place through the respective settling banks of the Clearing Members, accompanied by any necessary refunds or adjustments based on the amounts collected up to the previous month.
To facilitate the process, all Clearing Members have been directed to ensure the requisite amount in their respective settling bank accounts by the specified deadline. The NCCPL has already made necessary details and reports for the said period available in the CGT System.
Additionally, the notification states that the aggregate amount of CGT arising from the trading of future commodity contracts at the Pakistan Mercantile Exchange (PMEX) for the period January 01, 2019, to January 31, 2019, will also be collected on February 27, 2019. Similarly, necessary details and reports for this period have already been made available to ensure a smooth collection process.
The announcement further indicates that the aggregate amount of CGT arising from the redemption of units of open-end mutual funds has been finalized for the period December 01, 2018, to January 31, 2019. The relevant details and reports are already accessible in the CGT System.
To ensure accuracy and transparency, Clearing Members, Pakistan Mercantile Exchange, and Mutual Funds have been instructed to verify the investor-wise details of capital gain or loss and associated taxes through reports/downloads. Any discrepancies or issues arising from none or partial collection of CGT will be addressed in accordance with the Rules and NCCPL Regulations, as warned by the notification.
The NCCPL’s initiative to collect CGT reflects the commitment to maintain regulatory compliance and transparency in financial transactions within the stock market and commodity exchanges. As the deadline approaches, market participants are urged to adhere to the outlined procedures to avoid any potential regulatory actions.
