KARACHI :To entice fresh investment in Pakistan Stock Exchange (PSX) which has been already sailing on higher note to get tax break, the federal government might cut tax rate on buying and selling of shares by half or 0.01 percent from 0.02 percent.
The reduction in tax rate would boost domestic as well as foreign investment as it would reduce cost of the companies and brokerage house.
Another move expected in the budget 2017-18 would be the extension in time limit of holding the shares. The extension would eliminate the 7.5 percent tax rate implied on capital gains.
Explaining further, the sources told that the shares purchased on July 1, 2012 or before that would be tax exempted if sold in 2017.
The government is also likely to reduce or eliminate the element of federal excise duty on life insurance and personal insurance.
“Reduction or elimination of tax rate to promote insurance industry in the countryâ€, an analyst said.
