Karachi, July 31, 2023 – The National Clearing Company of Pakistan (NCCPL) has issued a notification regarding the collection of super tax from investors in the stock market.
The tax collection falls under Section 4C of the Income Tax Ordinance, 2001 and will apply to all investors in the Capital Gain Tax (CGT) regime implemented under Section 37A of the Ordinance, but only if their net capital gain exceeds Rs. 150 million in the current tax year.
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As per the notification, the amount of Super Tax will be separately disclosed in the Annual Certificate to be issued to taxpayers. This move is part of the government’s efforts to ensure a fair and equitable tax system and to generate revenue for public welfare and development initiatives.
The collection of CGT on disposal of shares at the Pakistan Stock Exchange (PSX) for the period June 01, 2023, to June 30, 2023, is scheduled for Monday, August 7, 2023. The NCCPL will collect the aggregate amount through the respective settling banks of Clearing Members (CMs). All CMs have been requested to ensure that the requisite amount is available in their respective settling bank accounts. To facilitate this process, necessary details and reports for the said period have already been made available in the CGT System.
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Similarly, the aggregate amount of CGT arising from the trading of future commodity contracts at PMEX for the period June 01, 2023, to June 30, 2023, will also be collected on Monday, August 7, 2023, from the PMEX. The relevant details and reports have already been made accessible for this purpose.
Furthermore, the aggregate amount of CGT arising from the redemption of units of open-ended Collective Investment Schemes has been finalized for the period April 01, 2023, to June 30, 2023. Necessary details and reports related to this have already been made available in the CGT System.
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The NCCPL has requested all CMs and PMEX to verify the investor-wise details of capital gain or loss and tax thereon through reports and downloads. They have emphasized that, in the case of non-payment or partial collection of CGT, necessary actions will be taken in accordance with the Rules and NCCPL Regulations.
This development comes as the authorities strive to strengthen the country’s tax collection mechanism and promote transparency in financial transactions. Investors in the stock market are advised to comply with the tax regulations and ensure timely submission of relevant information to avoid any potential penalties or consequences.
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