PSX notifies abolition of advance tax

KARACHI: Pakistan Stock Exchange (PSX) on Tuesday announced that effective March 1, 2019 advance tax on buying and selling of shares had been abolished following the approval of the supplementary Finance Bill 2019.

“All Trading Rights Entitlement Certificate (TREC) holders/shareholder are requested to note that the Finance Supplementary (Second amendment) act, 2019 has been published,” the apex bourse said in a notification.

The PSX said the tax on members (TREC holders) of stock exchange in lieu of their commission under section 233A had been approved to be abolished with effect from March 1, 2019.

It said the advance tax on purchase and sale value of shares traded in lieu of tax on commission of 0.02 percent stood abolished, the notification said.

However capital value tax (CVT) on purchase of shares of a public company listed on a registered stock exchange in Pakistan would be taxed at 0.01 percent of the purchase value, the notification added.