Top KSE brokers lobbying against imposition of CGT

[LRE]

Top KSE brokers lobbying against imposition of CGT

* Hold separate meetings with Zardari and Naveed Qamar

By Zafar Bhutta

ISLAMABAD: Top brokers of Karachi Stock Exchange have urged the leadership of Pakistan Peoples Party (PPP) to avoid any possible imposition of capital gains tax (CGT) on stock trading in the upcoming budget 2008-09.

Sources said that the KSE delegation included prominent brokers Arif Habib, Shahzad Chamdia and Shoaib Memom. They informed the Co-chairman Pakistan Peoples Party (PPP), Asif Ali Zardari and Federal Finance Minister, Syed Naveed Qamar in separate meetings that any possible imposition of capital gains tax on stock exchange trading would have negative repercussions and added, “any such move would shake the confidence of investors.”

Sources said that the KSE brokers held meeting with PPP co chairman, Asif Ali Zardari Wednesday night and apprised him that possible imposition of capital gains tax would hurt the capital market and economy of Pakistan. Brokers urged Zardari that at this point of time, there is need to rebuilt investors’ confidence and imposition of the said tax will wreak havoc on it.

Sources said that the brokers received positive response from PPP co chairman, as he assured the delegation that the government is fully committed in supporting the capital market.

A delegation of Karachi Stock Exchange brokers also held meeting with Federal Minister for Finance, Syed Naveed Qamar and briefed him about their apprehensions regarding the possible imposition of capital gains tax. He said that the government has not yet decided about levying of capital gains tax and is considering various options to beef up the revenue collection.

The KSE delegation drew Finance Minister’s attention towards proposed extension of capital gains tax exemption.

The Finance Minister apprised the delegation about the investor friendly policies of the government and said that the government sees a very important role for the capital market in the economic development of Pakistan. He assured that government would continue to pursue investor friendly Policies.

He said that presently government’s biggest challenge is to bring down the budget deficit due to sharp rise of oil prices in international market. In order to deal with this situation, “every segment of society will have to contribute,” he added. The Finance Minister accepted the invitation of the delegation to visit the Exchange at the earliest convenience.

http://www.dailytimes.com.pk/default.asp...2008_pg5_1