April 22, 2020 (MLN): Pakistan Stock Exchange has announced the abolition of Capital Value Tax (CVT) on the purchase value of modaraba certificates or any instrument of redeemable capital.
PSX informed all TREC holders via a notification that The Tax Laws (Amendment) Ordinance, 2020 has been published through which the said Amendment Ordinance, sub-section (1) of section 7 of the Finance Act, 1989 has been ceased to apply from the date of commencement of the said Amendment Ordinance i.e. April 19, 2020.
“Therefore, no Capital Value Tax (CVT) is payable to Federal Government on the purchase value of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (now Companies Act, 2017) or shares of a public company, listed on a registered stock exchange in Pakistan with effect from April 19, 2020.”, said PSX.
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