ISLAMABAD (June 04 2005): The government will increase capital value tax (CVT) on shares buying from 0.01 percent to 0.1 percent in the 2005-06 budget, official sources told Business Recorder on Friday. Policy makers said they believe that shares business is highly profitable and those who were making money in it should feel their social responsibilities and pay reasonable tax on the earnings.<br>
“We have decided to go back to the original CVT formula and its rate would be increased from 0.01 to 0.1 percent in the forthcoming budget”, said an official.
Government circles are confident that this time the stock market players would not resist the increase in CVT as they are now used to it.
Information gathered from the KSE showed that it collected Rs 345 million in the first six months of the current fiscal year.