KSE wants government to lift CFS cap, extend CGT exemption period

The board of directors of Karachi Stock Exchange (KSE) and leading brokers have proposed to the Prime Minister to lift continuous funding system (CFS) cap and extend the exemption period of capital gain tax (CGT) to boost the investors'' confidence in the share market.
These proposals were floated during a meeting of KSE board of directors and leading brokers with Prime Minister Shaukat Aziz at the Governor House here on Friday. The KSE delegation said that the government should take concrete steps to boost the investors'' confidence. The Prime Minister listened to the point of view of the delegation and assured them that the government would take all steps to increase the economic activities in the country and to boost investors'' confidence in the share market.
He said that the KSE was one of the best performing share markets in the regions, and assured the delegation that government would review the proposals floated by them and would take a decision, which would be in favour of the share market.
The KSE delegation proposed to enhance the upper limit of CFS to reduce the liquidity crunch at the stock exchange. The existing limit of CFS was Rs 55 billion. The delegation was of the view that the exemption period for implementation of capital gain tax should be extended. The present period of exemption of CGT is June 2008.