CGT on disposal of securities to be collected on Dec 30

CGT on disposal of securities to be collected on Dec 30

The National Clearing Company of Pakistan Limited (NCCPL) has announced that it will collect Capital Gain Tax (CGT) on the disposal of securities for the month of October 2021 on December 30, 2021.

This collection will be executed through the respective settling banks of clearing members, as per a notification issued by NCCPL.

The notification specifies that the total CGT amount from the disposal of shares at the Pakistan Stock Exchange (PSX) for the period from October 1, 2021, to October 31, 2021, will be collected on Thursday, December 30, 2021. Clearing members are urged to ensure the availability of the requisite amount in their respective settling bank accounts to facilitate this process. Detailed reports and necessary information for the relevant period have already been uploaded to the CGT system for reference.

In addition, the CGT arising from the trading of future commodity contracts at the Pakistan Mercantile Exchange (PMEX) for the same period will also be collected on December 30, 2021. The necessary details and reports for these transactions are similarly available for review and verification.

The NCCPL has instructed clearing members and PMEX to verify the investor-wise details of capital gain or loss and the corresponding tax, if any, through the provided reports and downloads. This verification process is crucial to ensure accurate tax collection and compliance with the regulatory framework.

The NCCPL has also issued a warning that failure to collect the CGT, whether partial or total, will result in necessary actions being taken in accordance with the Rules and Regulations. This serves as a reminder to all stakeholders of the importance of compliance with tax collection procedures.

The timely collection of CGT is a critical component of maintaining the integrity and efficiency of Pakistan’s financial markets. By ensuring that all clearing members comply with these requirements, the NCCPL aims to uphold the regulatory standards and support the country’s fiscal policies.

This announcement underscores the NCCPL’s commitment to enforcing tax regulations and facilitating transparent financial practices within Pakistan’s stock and commodity markets.