Members of the Lahore Stock Exchange (LSE) have demanded the government to reduce the Federal Excise Duty (FED) levied on Brokerage Commission, currently at 16 per cent, as it has increased the cost of trading for investors.
In a statement issued by LSE on Thursday, it was said that reduction of FED will enhance the volume of the shares and develop the confidence of investors.
The investors’ biggest concern remains low volumes after imposition of Capital Gains Tax (CGT). The LSE average volume is down more than 50 per cent and that is why the quantum of foreign flows is also being affected, members said.
“So the CGT should be exempted for the next three years. Taxes on new and undocumented/informal areas like agriculture and real estate should remain the major concentration of the new budget,” they added.
It was also demanded that the government should put fully concentration on energy crises and also announce tight gas policy.
Published in The Express Tribune, May 27th, 2011.
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