News: CGT implementation from next week: SECP
Publication: The Nation
Date: September 8, 2012
Web Address:- http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/08-Sep-2012/cgt-implementation-from-next-week-secp
CGT implementation from next week: SECP
ISLAMABAD- The rules of Capital Gains Tax (CGT) have been approved and will be implemented on transaction of shares by the next week after the final approval from the Federal Board of Revenue (FBR).
This was stated by the Chairman Securities and Exchange Commission of Pakistan (SECP), Muhammad Ali while addressing a press conference here Friday. He said that to further promote and develop the securities markets in the country, internet and sub-broker regime would be introduced to provide facilities to more people for making investments in the stock market.
“Currently about 80 percent share holders belong to big cities like Karachi, Lahore and Islamabad and to involve the people from far off areas of the country SECP is working on developing distribution network to enhance investment in security market”, he added.
He informed that in first phase, SECP has suggested the merger of Islamabad and Lahore Exchange to make their balance sheets stable, save operational charges at large scale and get competitiveness in global security market.
In second phase, the merger of all three exchanges including Karachi, Lahore and Islamabad has also been suggested to ensure establishment of a strong financial entity to put the domestic market in well positions in international markets and attract better investors, he added. Muhammad Alli said that public sector enterprises code of governance would be finalized within next few months, aiming at improving and enhancing the performance of these entities.
The rules for the PSEs code of governance would be constituted in consultation with the ministries of Finance and Law and a task force has already been constituted in Economic Reforms Units of the Ministry of Finance in this regard, he added.
The task force would finalize its submissions by October this year and under the new code of governance, the ministers would not be allowed to become the head of the board of governance.
SECP head also informed that World Economic Forum has also hailed the performance and reforms introduced by the commission in local security markets as its rank has improved by 15 points.
Global Competitiveness Index ranked the country in 29 position out of total 144 countries in strength of investors protection, 54th position in financing through local equity market and 55th position each in venture capital availability and regulation of securities.
The Global Competitiveness Index ranked the country in 62 out of 144 countries as compared 76 number during the year 2011-10 in burden of government regulation and 86th in strengthening of auditing and reporting. It ranked the country in 108 position in ethical behavior of firms and 111 on efficiency of corporate boards.
He said that the commission under its reforms process was working on capacity building, awareness and enforcement to further enhance the performance of institution.
He was of the view that improvement in ranks was a positive and healthy sign for the regulatory body of the country which would help in increasing the confidence of foreign investors to invest in the local capital market.