ISLAMABAD: Federal Minister for Finance and Revenue, Shaukat Tarin, chaired a meeting here at the Finance Division with Managing Director/CEO Pakistan Stock Exchange Farrukh H Khan to review proposals for Federal Budget 2021-22.

Adviser to PM on Austerity and Institutional Reforms Dr Ishrat Hussain, SAPM on Finance and Revenue Dr Waqar Masood, Chairman FBR and Secretary Finance Division were

also present during the meeting.

MD, Pakistan Stock Exchange (PSX) gave a detailed presentation on the huge impact of stock markets on wealth creation and mobilization of capital. He said that a broad-based capital market helped to achieve important economic and social objectives like increasing the number of taxpayers, optimising savings and investment rates, and reducing wealth inequalities.

Tax measures are an important policy tool to increase investments and savings in the economy and to stay competitive with other markets.

The Managing Director submitted proposals to align rates of capital gain tax on disposal of securities in line with regional practices, rationalisation of tax rates for companies listed on the stock exchange, enhanced tax credit for listed small and medium enterprises, unlocking the potential of private funds and

many other suggestions that will help broadening the tax base/revenue collection.

The Finance Minister appreciated the recommendations from the MD Stock Exchange and said the government was strongly committed to strengthening of the financial markets and was ready to adopt measures that could mobilise capital to more productive sectors.

He further stated that the government was considering to introduce new tax regime that was in accordance with the changing economic environment. He welcomed the proposals and assured that those would be given due consideration in the upcoming budget.—PR

Copyright Business Recorder, 2021