ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has sent its recommendations to the government for restoration of the capital market.
The SECP in its budget suggestion viewed that 15 per cent CGT is received on sale of shares during one year and 10 per cent CGT on real state while it suggested that tax cut on earned income having a yearly profit of 0.1 million should be avoided.
The SECP recommended amendment in laws to make companies compatible with sharia constraints which will increase investment in the capital market.
The body has suggested extending tax credit facility till 2029 for volunteer pension scheme while it also has suggested ending the advance tax on sale and transfer of properties of the real estate investment trust.
In the same way, the commission said that properties of real estate investment trust are registered on the actual market rate. Hence its profit should be taken as a profit of shares.
The commission has recommended ending the dual tax on real estate investment trust as the tax cut is conducted on real estate investment trust and investment separately.
The SECP also has come up with new suggestions for the insurance sector while it recommended ending federal insurance fees imposed on Insurance premium.
It also suggested removing federal excise duty on micro insurance schemes while it also of the view that not to charge advance tax on micro-insurance schemes.
Suggesting the introduction of exchangeable traded funds for the promotion of the capital market, it viewed that the funds will cause an increase in investment in the capital market.
On the same way, the commission has recommended ending yearly tax credit facility limit of two million and viewed that ending the limit will pave the way increase of investment in the market.