Karachi, December 19, 2025 — The Large Taxpayers Office (LTO) Karachi has reported a remarkable 475 percent increase in the collection of capital gains tax (CGT) on the disposal of securities during the first five months of the current fiscal year 2025–26, reflecting the strong performance of the Pakistan Stock Exchange (PSX).
According to officials, LTO Karachi — the Federal Board of Revenue’s (FBR) largest revenue-collecting unit with jurisdiction over taxation of shares traded on the PSX — collected Rs69 billion in CGT during the period from July to November FY26. This marks a substantial rise compared to Rs12.14 billion collected in the same period of the previous fiscal year.
Tax officials attributed the extraordinary growth primarily to the sustained rally in the stock market over the past year, which pushed benchmark indices to historic highs and significantly increased trading volumes and investor activity. The sharp rise in share prices and higher turnover across major sectors resulted in increased realization of capital gains, translating into higher tax receipts.
Monthly data also highlighted a strong upward trend. In November 2025, LTO Karachi collected Rs3 billion as capital gains tax on securities, registering an 84 percent increase compared to Rs1.65 billion collected in November last year. Officials said the monthly surge underscores the deepening impact of market momentum on tax revenues.
The FBR believes the improved CGT performance demonstrates the effectiveness of its tax administration framework for capital market transactions, including better reporting mechanisms and enhanced compliance.
Looking ahead, tax authorities remain optimistic about further growth in CGT collections, citing continued bullish sentiment in the equity market and expectations of sustained investor confidence. The strong revenue inflow from stock market activity is expected to support overall fiscal targets for the current financial year.