KARACHI , JAN 26 (DNA) – The federal government’s relief package for the stock market in the ‘Mini-budget’ on January 23 has brought positive impact as the KSE-100 index settled at 40,254 points with a rise of 958 points within one week.
The business-friendly concessions including abolition of the advance tax of 0.02pc on share trading under Presumptive Tax Regime and super tax in the mini-budget have been welcomed by the stockbrokers and industrialists altogether.
It is anticipated that the move would help reduce the cost of doing business and encourage the traders to eventually increase market volume.
The government, through the Finance Act 2015, had imposed 4% super tax on the banking companies to collect Rs500 million or more whereas for others the tax rate was 3% for fiscal year 2016.
The super tax was being spent on the rehabilitation of internally displaced persons (IDPs) who were affected due to the war against terrorism at that time in Pakistan.
Meanwhile, shares have risen by Rs125 billion as local and foreign investors have bought shares worth $33 million.
According to analysts, it was being anticipated that the government would abolish the capital tax too, however, the alteration and abolition in tax structure would certainly help investment in Pakistan.
Besides, the government in the second supplementary budget has lent support to exports, encouraged investments, lifted the ban on purchase of vehicles by non-filers and gave concessions to increase lending to industry, agriculture and small and medium enterprises.
