AAJ TV : Pakistan Ki Awaz

KARACHI : The Advisor to Prime Minister on Finance, Shaukat Tarin, has announced to abolish withholding tax applicable on shares sale. Briefing the media after his meeting with members of Karachi Stock Exchange (KSE) here on Monday he also announced that he would advise the Federal Board of Revenue (FBR) to convert the tax being paid under 'Presumptive Tax Regime' (PTR) to be made adjustable (as compared to minimum) with final tax liability of members.

He also announced that the newly imposed federal excise duty (FED) would be collected directly from members, as prescribed by the FBR. However, the audit process would be made transparent and hassle-free. He said that FED would be collected from members on self-assessment basis. However, around 2.5 percent members from all three stock exchanges would be selected, on random basis, for audit, he said. To avoid any misperception of harassment, the audit of the selected members would be conducted through third party, he added.

Responding to a query on insider trading, Tarin said that the Securities and Exchange Commission of Pakistan (SECP) has the software to detect the insider trading. "It is a matter related to the SECP rather than the Ministry of Finance," he said, and added that "SECP is capable to detect insider trading and to take steps to address the issue". The Advisor briefed the KSE members about the current state of economy and said that a significant part of stabilisation efforts has been achieved. He said that he expected that the Monetary Policy would reflect the impact of reduced inflation.

He urged KSE members to play an active/leadership role in private equity and other forms of capital formation so that the Karachi Stock Exchange could be more integrated with national economy. He also advised the frontline and apex regulators to focus on market development, including leverage products, to ensure that vibrancy is maintained in the capital markets. The Board and Members of the Exchange appreciated the comments and announcements of the Advisor to PM on Finance.

Copyright Business Recorder, 2009