KARACHI: PSX Stockbrokers Association (PSA) members and other participants of capital market are dismayed over the neglect of the PSX by the federal government in the budget for FY 2020-21.

According to a press release issued here on Thursday, exorbitant rates of capital gain tax (CGT), absence of distinction between short term gains and gains on long term investments, lack of tax-incentives for companies to get listed and patent errors in relevant income tax laws (taxation of gains on disposal of securities) are not only hampering new listings but are also frustrating investors to abandon the market.

The Securities and Exchange Commission of Pakistan (SECP), itself an arm of the federal govt and the apex regulator of the corporate world including capital market had many a times explained the predicament faced by the capital market to the FBR at the highest level. It is unusual and unfortunate that despite the Commission's pointing out, the distortions in tax laws hurting the capital market and other needs of the market, have not been attended to by FBR.-PR