PSBA urges tax relief on Sahulat Accounts to boost market participation

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By MG News | January 23, 2025 at 05:59 PM GMT+05:00

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January 23, 2025 (MLN): The Pakistan Stock Brokers Association (PSBA) has recommended the government provide tax relief on Sahulat accounts to encourage greater market participation.

This was stated by Muneer Khanani, Chairman of the PSBA while speaking to Mettis Global on Thursday. 

He also indicated the significant growth in total Unique Identification Numbers (UINs) during the period of July to December 2024, which saw an increase of 61,862, bringing the overall total to 357,419.

December 2024 alone recorded a remarkable addition of 15,130 UINs, marking a high for the month.

There is a promising opportunity for investors with the historically high price-to-earnings multiple of 8.5x, as compared to the current one for the Pakistan Stock Exchange (PSX), along with market outlooks, attractive dividend yields, and positive economic indicators, he added.

He also emphasized the importance of increasing the number of tax filers in the country.

"As an association, we believe that the maximum number of people should become filers," he stated.

Khanani also stressed the need for a consistent policy on capital gains tax.

"The frequent changes to capital gains tax every year are a concern.

There should be a long-term policy to provide stability and confidence to investors," he added.

He also mentioned that the PSBA has put forth several other recommendations to the government yesterday during the meeting with the Chairman of the National Assembly’s Standing Committee on Finance and Revenue.

It including the removal of distortion/anomaly regarding the definition of the term “Security” & starting of its holding period with reference to section 37A of the Income Tax Ordinance, 2001.

It was also proposed to allow investment savings accounts like RSIA accounts in the USA, ISA accounts in the UK, and NISA accounts in Japan aimed at promoting financial inclusivity.

Other proposals put forth include the settling of jurisdiction issues in the council of common interest, rationalization of tax rates for companies listed on the stock exchange, consistent & long-term tax policies for the capital market, and the recently presented Tax Law (Amendment) Act, 2024.

Copyright Mettis Link News

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