NCCPL to collect 13% SST from PSX stockbrokers

ICB expresses interest in buying Silkbank shares worth €50 million

KARACHI:

The National Clearing Company of Pakistan (NCCPL) has announced on Thursday that it will collect Sindh sales tax (SST) at 13% on services to stockbrokers at the Pakistan Stock Exchange (PSX) after the provincial government recently amended the relevant laws. NCCPL will collect SST on its invoices with effect from March 14, 2023.

Clearing members, who settle trade deals among brokers and investors at NCCPL, are advised to pay the tariff for the month of March 2023 along with SST at 13% on the fifth settlement day, which is April 7, 2023.

The collection of SST is not new to the stockbrokers, as many of them were already paying it to the Sindh Revenue Board (SRB). The recent amendment in SST on Services Act 2011 has authorised the NCCPL to collect the tax on behalf of SRB and submit the same with it.

Speaking to the Express Tribune, NCCPL Chief Executive Officer Muhammad Lukman said, “The collection of tax will add no new cost to clearing members in our opinion.”

“NCCPL offers five to six services to PSX members, including clearing and settlement of stock trade deals, financing to investors through brokers to buy stocks, and collection of capital gains tax. Clearing members will now pay 13% SST on the NCCPL services valued at Rs50 million a month, estimated to be roughly Rs5-6 million a month,” said Lukman.

In other news, Silkbank has received foreign interest. International Commercial Bank (ICB) of South Sudan has expressed an interest in subscribing to the shares of Silkbank Limited up to the extent of €50 million, subject to all regulatory requirements and financial due diligence. The board of directors of the bank has reviewed and “considered the letter of intention and accordingly granted its approval to the management of the bank to formally pursue the potential investment.”

Published in The Express Tribune, April 7^th, 2023.

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