Islamabad: The Pakistan Stock Exchange (PSX) has announced plans to collect Capital Gain Tax (CGT) from Clearing Members, the Pakistan Mercantile Exchange, and Asset Management Companies on July 31, 2024, for various financial activities conducted over recent months.

The PSX stated that the collection would pertain to CGT on the disposal of shares by Clearing Members during the period from June 1, 2024, to June 30, 2024. The funds are to be collected through the designated settling banks associated with each Clearing Member. It is mandatory for all Clearing Members to ensure the availability of the requisite amounts in their respective bank accounts to meet the tax obligations. According to information available from the Pakistan Stock Exchange (PSX), the details necessary for calculating the CGT have been provided in the PSX’s CGT System.

In addition to the stock market transactions, CGT will also be collected for trading of future commodity contracts on the Pakistan Mercantile Exchange. This collection will cover transactions from February 1, 2024, to June 30, 2024. The details required for these calculations have similarly been provided ahead of the collection date.

The collection will further extend to the CGT on redemption of units from open-end Collective Investment Scheme funds, spanning transactions from June 1, 2024, to June 30, 2024. These details are also available in the CGT System.

Clearing Members and the Pakistan Mercantile Exchange are required to verify the investor-wise details of capital gains or losses and the corresponding tax through the provided reports and downloads. The PSX warns that failure to collect the CGT fully or partially will result in necessary actions as prescribed by the Rules and NCCPL Regulations.