Karachi, June 3, 2025 — A significant overhaul in the structure of Capital Gains Tax (CGT) on the disposal of securities is likely to be announced in the upcoming budget for the fiscal year 2025–26, according to sources close to the Federal Board of Revenue (FBR).
Insiders revealed that the FBR is working on implementing a uniform CGT rate of 15% on all securities acquired on or after July 1, 2013. This move aims to simplify the current multi-tier tax structure, which varies based on the acquisition date and holding period of securities.
As per the Finance Act, 2024, securities acquired on or after July 1, 2024, are already taxed at a flat rate of 15%, regardless of the holding period, provided the individual is listed on the Active Taxpayers List (ATL) both at the time of acquisition and disposal.
However, securities acquired before July 1, 2024, are still subject to the older CGT regime. For example, those acquired between July 1, 2013, and June 30, 2022, are taxed at 12.5%. Furthermore, gains on securities acquired prior to July 1, 2013, are currently exempt from CGT.
For securities acquired between July 1, 2022, and June 30, 2024, the CGT rate is applied on a sliding scale based on the holding period: starting from 15% for assets held less than a year to 0% for those held longer than six years.
The FBR now aims to unify all these fragmented rules under a single CGT rate of 15%, streamlining tax compliance and enhancing revenue predictability. Sources indicated that the authorities are also evaluating the future of exemptions on long-held securities, particularly those acquired before July 1, 2013, which currently attract no CGT.
Tax officials believe this unified structure will ease the administrative burden on both investors and regulators. The proposed changes in CGT are likely to be finalized and announced formally in the Finance Bill 2025, to be tabled next week. The overhaul would mark a major shift in Pakistan’s approach to taxing capital gains on securities.