Karachi, June 1, 2025 – The Federal Board of Revenue (FBR) has reported an exceptional 168% surge in Capital Gain Tax (CGT) collection from the disposal of securities during the first 10 months (July–April) of the fiscal year 2024–25.
According to provisional data shared with PkRevenue, the FBR collected an impressive Rs30 billion in CGT between July and April, up from Rs11 billion collected in the same period last fiscal year. This growth reflects the booming performance of the Pakistan Stock Exchange (PSX), which has seen record trading activity and investor confidence.
The most notable jump was recorded in April 2025, when CGT collection surged by 469%, reaching Rs5.70 billion compared to just Rs1 billion in April 2024. FBR officials attribute this sharp increase to high turnover in the equity markets and the overall bullish sentiment that has gripped the market, with the KSE-100 index reaching new historical highs.
The FBR administers CGT under Section 37A and Section 147(5B) of the Income Tax Ordinance, 2001. These sections mandate taxation on capital gains derived from securities transactions, ensuring that investment income contributes fairly to national revenue. Officials emphasized that the buoyancy in the PSX, along with regulatory compliance and effective tax enforcement, played a key role in this surge.
As per the law, capital gains from the disposal of securities after July 1, 2010, are taxable under specified rates, except in cases where exemptions apply. These exemptions include gains made by banking and insurance companies, off-market transactions not settled through the National Clearing Company of Pakistan Limited (NCCPL), and certain transactions during initial public offerings (IPOs), unless recorded with NCCPL.
With the PSX maintaining strong momentum and investor sentiment staying positive, the FBR expects CGT revenue to remain on an upward trajectory. This growth not only reflects economic resilience but also strengthens the government’s efforts to broaden the tax base through capital markets. Enhanced CGT collection has become a critical component of the FBR’s fiscal strategy, underscoring the significance of financial market taxation in national revenue generation.