KARACHI: The government has abolished Capital Value Tax (CVT) on purchase value of any instrument of redeemable capital, Pakistan Stock Exchange (PSX) informed to all members of the exchange.
The PSX informed all TREC Holders and shareholders that the Tax Laws (Amendment) Ordinance, 2020 has been published through which the said amendment ordinance, sub-section (1) of Section 7 of the Finance Act, 1989 has been ceased to apply from the date of commencement of the said Amendment Ordinance i.e. April 19, 2020.
“Therefore, no capital value tax (CVT) is payable to federal government on purchase value of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (no Companies Act, 2017) or a shares of a public company, listed on a registered stock exchange in Pakistan with effect from April 19, 2020.”
