CGT on securities increased for non-filers

The government has increased the capital gains tax (CGT) rate on disposable securities for the non-filers, while rates are kept unchanged for the filers.

The Finance Bill says the capital gains tax rate will remain at 15% on securities held for less than a year, while non-filers will pay at the rate of 18%. “In case holding period of securities is more than a year but less than two-year, CGT would be imposed at 12.5% for filers and at 16% for non-filers,” it added. Where the holding period of securities is more than two years, but the security was acquired on or after 1 July 2012, capital gains tax will be 7.5% for filers and 11% for non-filers. There will be no capital gains tax on securities acquired before 1 July 2012.

The government has also imposed a CGT of 5% on filers and non-filers on future commodity contracts entered into by the members of the Pakistan Mercantile Exchange. Capital gains derived from the sale of immovable property are fixed at 10% where the holding period of immovable property is up to five years; there will be no CGT on properties held for more than five years.

Source: The News: CGT on securities increased for non-filers