Karachi, September 12, 2024 – The National Clearing Company of Pakistan Limited (NCCPL) announced on Thursday that it will collect Capital Gain Tax (CGT) from clearing members of the stock market on Monday, September 23, 2024.
This collection pertains to the capital gains realized on the disposal of shares at the Pakistan Stock Exchange (PSX) during the period from July 1, 2024, to July 31, 2024.
In its official statement, the NCCPL urged all clearing members to ensure the availability of the requisite funds in their respective settling bank accounts by the deadline. “The aggregate amount of CGT will be collected through the settling banks of the clearing members,” the announcement stated, adding that detailed reports and necessary information for the specified period have already been made available through the CGT System.
Commodity Contracts and Mutual Funds
In addition to stock market transactions, the NCCPL will also be collecting CGT arising from the trading of future commodity contracts at the Pakistan Mercantile Exchange (PMEX) for the same period—July 1 to July 31, 2024. The collection for this sector is also scheduled for September 23, 2024, and relevant reports have been shared with the concerned parties.
Moreover, the NCCPL confirmed that the CGT arising from the redemption of units in open-end mutual funds during the aforementioned period has also been finalized. Clearing members, PMEX, and mutual fund operators have been asked to verify investor-wise capital gain or loss and the corresponding tax details through the available reports and downloads from the CGT System.
Ensuring Compliance
The NCCPL emphasized the importance of compliance with the collection requirements, warning that any failure to collect or remit the CGT in full would result in appropriate actions under the relevant rules and NCCPL regulations. Clearing members and participants in the PSX and PMEX are encouraged to review all investor-specific details of capital gains or losses and ensure the timely submission of taxes.
This announcement follows a routine practice of collecting CGT from financial market participants, but it serves as an important reminder for stakeholders to ensure timely payments and compliance to avoid any penalties or regulatory actions.
Looking Ahead
As the deadline approaches, stock market participants, mutual fund operators, and commodity traders are expected to meet their obligations, ensuring smooth tax collection. The NCCPL’s consistent oversight and transparent reporting through the CGT system are designed to facilitate this process, providing investors and clearing members with the necessary tools to verify their tax liabilities.
