PM’s special assistant, FBR chief discuss budget proposals with Pakistan Stocks Exchange

KARACHI: Haroon Khan, Special Assistant to the Prime Minister for Revenue visited Pakistan Stock Exchange Limited (PSX) and Chaired a high-level meeting to discuss the PSX Federal Budget Proposals 2017-18 along with Muhammad Zafar-ul- Haq Hijazi Chairman Securities & Exchange Commission of Pakistan (SECP), Dr. Muhammad Irshad Chairman Federal Board of Revenue (FBR).

Pakistan Stock Exchange Limited was represented by Muneer Kamal Chairman PSX, Members of the Board of Directors and Taxation Committee PSX .

The Chairman, Pakistan Stock Exchange Limited welcomed the guests and briefed about the successes of the capital market, its importance and the positive steps taken by the Government for the betterment of the capital market, economy and the country.

Arif Habib, former President of the Stock Exchange, industrialist and senior capital market specialist along with Abdul Qadir Memon, Chairman Taxation Committee PSX explained in detail the present key issues and proposals for the growth and betterment of the capital market, which will result in revenue generation and contribution to the National Exchequer.

The key proposals that were discussed and deliberated in detail amongst the high level participants included the following:

  1. Rationalization of Tax on Bonus Shares;
  2. Tax Credit on Enlistment on the Stock Exchange;
  3. Capital Gain Tax (CGT) on Disposal of Securities ;
  4. Unrealized Gain on sale of Immovable Property to a REIT Scheme;
  5. Investment in REIT be treated as Investment in Stock Fund;
  6. Rationalization of Taxation Regime for Brokers; and
  7. Applicability of Minimum Tax on services rendered or provided by the PSX.

Chairman Securities and Exchange Commission of Pakistan highlighted the continuous cooperation and coordination extended by the Government to the Commission for the introduction and implementation of healthy and prudent policies and initiatives undertaken by the Commission.

He further reiterated the support for the capital market in order to make it the best capital market in the world.

Chairman Federal Board of Revenue welcomed the proposals presented by PSX and agreed to have further discussions on them. He also assured that the Federal Board of Revenue will give these proposals fair consideration in the best interest of the capital market and economy of the country. He appreciated some of the proposals and stated that FBR will leave no stone unturned to facilitate the business community for better and prosperous Pakistan.

Haroon Khan, Special Advisor to the Prime Minister thanked the Chairman Securities and Exchange Commission of Pakistan and PSX for the invitation to discuss proposals of the capital market that are focused on revenue generation and betterment of the economy.

He elaborated on the key fundamental vision and objectives of the Government under the leadership of the Honorable Prime Minister Mian Nawaz Sharif and the positive outcome of the policies and measures undertaken by the Government since coming into power in 2013 under the guidance of the Finance Minister Muhammad Ishaq Dar.

He however stated that despite all the positive developments made by the Government, still there is a need to do more and prayed that the country moves forward in all aspects. He was of the opinion that rather than simply criticizing the Government, focus should be on how to grow further and move forward.

Haroon Khan also emphasized that the business community should also fearlessly come forward with its suggestions and supports the positive initiatives of the Government.

He also highlighted that governance of the country has become more difficult in recent times than ever before because of the ever growing unique challenges including those related to the region.

He emphasized that the vision of the Prime Minister and his Government is very clear and despite the challenges being faced, the Prime Minister remains strongly focused on betterment of the country and its economic growth and gave the example of CPEC which has been critically acclaimed to be a game changer for Pakistan. He gave examples of packages given to various sectors of the economy such as those given to exporters, real estate sector and retail & wholesaler sector.

He also emphasized on another aspect of the vision of the Prime Minister that was also strongly shared by him and the Finance Minister, which related to restoring investor confidence and putting in an incentivized system to encourage and bring funds held abroad by Pakistani nationals into the country so as to encourage savings and investments in various sectors of the economy.

Chairman of PSX said Government support for capital market would bring in both domestic and international funds into Pakistan and help corporate sector to expand, generate employment, raise income levels and support increase in government tax revenues.

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