CGT on disposal of securities to be collected on Dec 07

CGT on disposal of securities to be collected on Dec 07

The National Clearing Company of Pakistan Limited (NCCPL) announced on Tuesday that it will collect the aggregate amount of Capital Gains Tax (CGT) on disposal of securities for the month of October 2022 on December 07, 2022.

The CGT, pertaining to the disposal of shares at the Pakistan Stock Exchange (PSX) during the period from October 01, 2022, to October 31, 2022, will be collected through the respective settling banks of the clearing members. NCCPL has urged all Clearing Members to ensure that the requisite amount is available in their respective settling bank accounts for the timely collection. The details and reports for the specified period have already been made available in the CGT System.

In addition to the CGT on shares, the aggregate amount of CGT arising from the trading of future commodity contracts at the Pakistan Mercantile Exchange for the same period will also be collected on December 07, 2022. Similar to the shares, the Clearing Members and Pakistan Mercantile Exchange have been requested to verify the investor-wise details of capital gains or losses and tax amounts through reports and downloads. NCCPL emphasized that, in case of none or partial collection of CGT, necessary actions will be taken in accordance with the Rules and NCCPL Regulations.

The regular collection and reporting of Capital Gains Tax are essential components of the financial system, ensuring compliance with taxation regulations and contributing to the government’s revenue. The timely and accurate collection of CGT facilitates transparency and accountability in financial transactions, aligning with the broader objectives of a well-regulated and efficient capital market.

NCCPL plays a pivotal role in providing clearing and settlement services for transactions in various financial instruments, including equities and commodities. Its efforts in facilitating the smooth functioning of the capital market contribute to investor confidence and market integrity.

Investors and market participants are advised to stay updated on the relevant reports and comply with the tax regulations to avoid any potential discrepancies. The collaboration between the NCCPL, Clearing Members, and the Pakistan Mercantile Exchange is crucial in ensuring the effective implementation of tax-related processes and maintaining the credibility of the financial system.

As the financial landscape evolves, the NCCPL remains committed to upholding the highest standards in clearing and settlement services, fostering a conducive environment for investors and market participants alike. The collection of Capital Gains Tax for October 2022 marks another step in the ongoing efforts to strengthen the regulatory framework and enhance the efficiency of Pakistan’s capital market.