KSE criticises income support levy

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KARACHI: The Karachi Stock Exchange (KSE) has demanded of the government to withdraw 0.5 percent income support levy on net moveable wealth mentioned in the Finance Bill 2013.

 

The taxation committee of the board of KSE said that some of the important proposals presented by the exchange were not included in the bill, said a statement. It urged the federal government to reconsider its decision.

 

It said Pakistan’s capital market is highly documented and every single transaction made in the stock exchange is transparent since it is routed through banking channel.

 

The statement said that on account of advance tax on sale/purchase of shares, capital value tax, and capital gains tax, the exchange paid Rs1.8 billion to the federal government between July 2012 and June 2013. Moreover, stock brokers paid federal excise duty, it added.

 

It said that the imposition of 0.5 percent under Income Support Levy Act, 2013 would result in a significant flight of capital.

 

Besides, it added, it would pare bank deposits in addition to investment in real estate sector, thereby causing speculation. The committee maintained that the tax would encourage parallel economy.

 

Further, the committee took to task the insertion of section 165-A in the Income Tax Ordinance, 2001 – which provides a framework to banks for furnishing information about banking transactions to the tax authorities, saying this would result in harassment by tax officials.




Courtesy:  The News


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