Karachi, March 25, 2024 – The National Clearing Company of Pakistan Limited (NCCPL) has announced that it will be collecting capital gain tax (CGT) on Friday, March 29, 2024.
This move comes as part of the company’s regular procedures for tax collection in relation to transactions conducted at the Pakistan Stock Exchange.
In a notification released by the NCCPL, it was stated that the aggregate amount of CGT arising from the disposal of shares at the Pakistan Stock Exchange during the period of February 1, 2024, to February 29, 2024, will be collected on Friday, March 29, 2024. The collection will be facilitated through the respective settling banks of the Clearing Members.
Clearing Members have been advised to ensure that the requisite amount is available in their respective settling bank accounts to facilitate the smooth collection process. Additionally, necessary details and reports for the specified period have already been made available in the CGT System, enabling Clearing Members to access and review relevant information.
Furthermore, the notification also highlighted that the aggregate amount of CGT arising from the redemption of units of open-end mutual funds for the same period has been finalized. Similar to shares, necessary details and reports for mutual fund transactions have been made available in the CGT System for Clearing Members to verify investor-wise details of capital gain or loss and tax liabilities.
Clearing Members are urged to thoroughly review the provided reports and downloads to ensure accuracy in tax calculations and compliance with regulatory requirements. The notification emphasized that in the event of none or partial collection of CGT, appropriate action would be taken in accordance with the Rules and NCCPL Regulations governing tax collection procedures.
The announcement by the NCCPL underscores the importance of regulatory compliance and tax transparency within the financial markets of Pakistan. By facilitating the collection of CGT in a timely and efficient manner, the NCCPL aims to uphold the integrity of the capital market ecosystem and ensure adherence to tax regulations.
It is imperative for stakeholders, including Clearing Members, investors, and regulatory authorities, to collaborate in maintaining a robust framework for tax collection and reporting. Such measures not only contribute to the transparency and efficiency of the financial system but also foster investor confidence and trust in the market.
As the deadline for CGT collection approaches, stakeholders are encouraged to proactively engage with the NCCPL and respective clearing banks to address any queries or concerns regarding the tax collection process. By working together, stakeholders can contribute to the continued growth and stability of Pakistan’s capital markets.
