Karachi Stock Exchange Director Hails Budget

KARACHI: Director Karachi Stock Exchange (KSE) Zafar Moti Friday lauded the budget 2011-2012 and said it would have a positive impact on the country’s stock market. He said the government has agreed to the proposal of stock market to exempt individual and small investors from capital gain tax (CGT). He said this decision would encourage investors and help in boosting the trading volume in the capital market. These volumes have dropped to historically low levels in the last one and a half year, he added. He said the Finance Minister did not make specific announcement regarding CGT, but it was agreed with KSE that individual and small investors would continue to pay 0.02 percent withholding tax as a final tax liability. This will be announced in the Finance Bill 2011-12, he added. Commenting on the withdrawal of special duties and Federal Excise Duty on large number of items, Moti said it would boost local production of these items in the country and discourage their smuggling. Managing Director KSE Nadeem Naqvi said national budget 2011-12 would activity in the stock market and encourage initial public offerings (IPOs). Naqvi said KSE has roposed to exempt retail and small investors from capital gain tax as he tax payers do no want any interaction with tax collectors. He said simplification of tax collection would increase revenue for the country and boost the confidence of taxpayers. He said the government wanted to trigger growth in the economy and the cut in duties would have an impact on local production of goods and stock market would have so many IPOs.

Source: dailytimes.com.pk