Capital Value Tax (CVT) on shares trading has made the market punters upset as they see sudden drop in turnover which may push the market back on declining track.
Karachi Stock Exchange (KSE) Managing Director Moin Fudda said the impact would be immediate on the turnover.
"The government has imposed capital value tax which will directly affect the turnover," said Moin Fudda adding that it will bring a negative impact on the shares market. He said the cost of doing business in stock market would increase. The government has imposed 0.1 percent tax on shares trading.
"But the government has extended the exemption on capital gains tax which is a positive step," he said. He was of the view that the budget has given maximum relief to all sectors from the limited available resources.
Pakistan Commodity Importers Association and Karachi Kariana Merchant Association Chairman Rais Tar Mohammad termed the budget 'a gift' for the country and its people.
"It never happened in 25 years of my practical life that PSDP exceeded the defence budget," he said adding that the rationalisation of Sales Tax is tremendous step, which would directly benefit the public.
He said the abolition of further tax, which earns the government about Rs 9 billion, would now earn benefit for the public.
"The relief and plan for the agriculture sector would bring great change in the agriculture sector," he said.
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