The members of the board of directors of Karachi Stock Exchange (KSE) are scheduled to meet the Advisor to Prime Minister on Finance, Shaukat Tarin, on Tuesday in Islamabad to discuss various issues regarding imposition of federal excise duty (FED) on brokerage and its collection.
One of KSE directors confirmed their meeting with Shaukat Tarin to discuss the issue related to new taxation. He said that the issue of imposition of FED, its collection and provision of investors' details would be discussed in the meeting. The government has announced to impose 16 percent federal excise duty (FED) on brokerage and to abolish 0.02 percent capital value tax (CVT) on share purchase in the 2009-10 budget.
It is learnt that the KSE board would propose collection of FED at the exchange level rather than through brokers. It is also expected that the board will propose to abolish the condition of provision of details of all investors as it would be very difficult for brokers to provide the details of their investors.
Besides, the issues related to new taxation, the overall situation of the equity market including low trading activity at the share market are also likely to be discussed in the meeting.