The National Clearing Company of Pakistan Limited (NCCPL) has issued a notification to all members of the Pakistan Stock Exchange (PSX) and participants in the commodity market, including the Pakistan Mercantile Exchange and Mutual Funds, urging them to fulfill their Capital Gain Tax (CGT) obligations for the month of December 2018 by January 30, 2019.
The notification outlines the specifics of the tax collection process and serves as a reminder for entities involved in stock trading and commodity contracts.
The notification informs members of the PSX, including Clearing Members, about the collection of CGT arising from the disposal of shares at the Pakistan Stock Exchange for the period December 01, 2018, to December 31, 2018. The collection date has been set for Wednesday, January 30, 2019. The NCCPL will work in coordination with the respective settling banks of the Clearing Members to facilitate the collection process. Furthermore, the notification mentions that refund or adjustments based on previously collected amounts will also be made on this date.
All Clearing Members are strongly advised to ensure that the required amount for CGT is available in their respective settling bank accounts, ensuring a smooth and efficient collection process. Necessary details and reports pertaining to the CGT for the specified period have already been made accessible within the CGT System to support compliance.
In addition to the CGT collection from the disposal of shares at the PSX, the notification extends to the collection of CGT arising from trading future commodity contracts at the Pakistan Mercantile Exchange. This includes transactions conducted during the period December 01, 2018, to December 31, 2018. As with the CGT for shares, the collection date for commodity contracts is scheduled for Wednesday, January 30, 2019, and the requisite details and reports have already been made available to facilitate the process.
Furthermore, the NCCPL has finalized the aggregate amount of CGT arising from the redemption of units of open-end mutual funds for the period October 01, 2018, to November 30, 2018. This aspect of the notification serves as a comprehensive reminder for participants in mutual funds, ensuring they comply with their tax obligations within the specified timeline. The necessary details and reports for this category have also been provided in the CGT System.
The notification issued by the NCCPL underscores the importance of prompt and accurate compliance with CGT obligations. The authority firmly warns that in cases of non-compliance or partial collection of CGT, necessary actions will be taken in accordance with the established rules and NCCPL regulations.
The Capital Gain Tax is a crucial aspect of the financial system, playing a significant role in generating revenue and ensuring that participants in the stock exchange and commodity market contribute to the country’s fiscal resources. As such, it is essential for all involved parties to adhere to the specified timelines and procedures to maintain financial transparency and meet their tax responsibilities.
The NCCPL’s notification serves as a critical reminder to all participants in the Pakistan Stock Exchange, commodity market, and mutual funds to fulfill their Capital Gain Tax obligations within the designated time frame. The NCCPL is committed to ensuring that the tax collection process is carried out efficiently and transparently. It is imperative for all entities to adhere to these guidelines to promote financial transparency and contribute to the country’s revenue generation.
