KARACHI: Directors of the Karachi Stock Exchange (KSE) discussed the implications of the Finance Bill, 2012 in a board meeting held on June 6. They were of the view that some important proposals presented by KSE have not been made part of the Finance Bill and need to be reconsidered.
The officials have decided to approach the Ministry of Finance for the consideration and acceptance of the following proposals: firstly, making distribution of dividend by profit-making listed companies compulsory, in order to improve market liquidity and enable small investors to share in listed companies’ earnings.
Secondly, a reduction in tax rates for listed companies, so that more undocumented businesses are documented and subject to a better governance structure.
Thirdly, exemption from the Capital Gains Tax on Corporatisation and Demutualisation; differences in amount on issuance of shares due to Corporatisation and Demutualisation; and gains on subsequent sale of shares to strategic investors and to the public.
Fourthly, the introduction of an appropriate method for calculation of Capital Gains for Non-Residents, so that the country can benefit from investments from overseas Pakistanis along lines similar to India and China.
Finally, a reduction in powers for amending assessments in order to avoid economic uncertainty and establish and enhance investor confidence.
Published in The Express Tribune, June 8th, 2012.
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