Strong market performance boosts tax revenue as CGT collection surges over 260% in 10MFY26
A strong rally at the Pakistan Stock Exchange has helped tax authorities collect nearly Rs109 billion in Capital Gains Tax (CGT) during the first 10 months of fiscal year 2025–26, official sources said.
According to sources within the Federal Board of Revenue, the tax collected on disposal of securities increased by 263% during July–April compared with Rs30 billion in the same period last year.
The surge in revenue reflects a sharp rebound in equity market activity as the Pakistan Stock Exchange posted strong gains over the past year, driven by improved investor sentiment and increased trading volumes.
Despite global volatility, including geopolitical tensions following US-Israel strikes on Iran earlier in 2026, market participants said the PSX remained largely resilient and avoided a major downturn.
In April 2026 alone, CGT collection rose 33% year-on-year to Rs7.54 billion compared with Rs5.70 billion in the corresponding month last year.
Officials said the tax is collected under Section 37A and Section 147(5B) of the Income Tax Ordinance, 2001.
Market sources expressed optimism that improving diplomatic developments and macroeconomic stability could further support equities and sustain revenue growth in the coming months.
Analysts said continued bullish momentum at the PSX could help broaden the tax base and strengthen fiscal inflows at a time when Pakistan is focusing on revenue mobilisation under ongoing economic reforms.
