KARACHI: The government has abolished a provision for collection of advance tax at 0.02 percent on sale and purchase of shares in stock exchange.
They collection of advance tax will not be applicable from February 01, 2019.
Through Finance Supplementary (Second Amendment) Bill, 2019, presented on January 23, 2019 an amendment was introduced to Section 233A of Income Tax Ordinance, 2001 under which stock exchange is required to collect advance tax from its members on sale and purchase of shares.
The section 233A provides as:
Section 233A: Collection of tax by a stock exchange registered in Pakistan
Sub-Section (1): A stock exchange registered in Pakistan shall collect advance tax,—
(a) at the rate of 0.02 percent from its members on purchase of shares in lieu of tax on the commission earned by such Members; and
(b) at the rate of 0.02 percent from its members on sale of shares in lieu of tax on the commission earned by such members.
The tax is adjustable.
