The stock exchange investors have to obtain clearance certificate from National Clearing Company of Pakistan Limited (NCCPL) for closure of their brokerage accounts under the new capital gains tax (CGT) collection mechanism for investors in stocks.
Sources told Business Recorder here on Thursday that the Federal Board of Revenue (FBR) has drafted CGT rules in consultation with the Securities and Exchange Commission of Pakistan (SECP). Earlier, the FBR had proposed obtaining ''NOC'' from the stock market brokers before closure of the accounts of their investors. However, the idea was dropped and now brokerage account of the investors of stock exchanges would not be closed until and unless such person obtains a clearance certificate from NCCPL.
Sources said that the new CGT rules to be notified has specified that the provisions of Rule 13J shall not apply to the person whose tax liability on capital gains is discharged under the Eighth Schedule of the Income Tax Ordinance 2001; however the brokerage account of the investor shall not be closed until and unless such person obtains a clearance certificate from NCCPL. The condition would ensure that every investor must make payment of the CGT before closure of his account maintained with the brokerage house. If any investor has not made payment of the CGT, he has to first discharge his tax liability and then obtain clearance certificate from NCCPL.