Shaukat Tarin, the Federal Minister for Finance and Revenue, chaired a meeting here at the Finance Division with Mr. Farrukh H. Khan, the Managing Director/CEO of the Pakistan Stock Exchange, to review proposals for the Federal Budget 2021-22.
The MD of the Pakistan Stock Exchange (PSX) gave a detailed presentation on how stock markets have a huge impact on wealth creation and capital mobilization. According to him, a broad-based capital market aids in the achievement of important economic and social goals such as increasing the number of taxpayers, optimizing savings and investment rates, and reducing wealth disparities. Tax policy is an important tool for increasing investments and savings in the economy while also remaining competitive in other markets.
The Managing Director proposed aligning capital gain tax rates on securities dispositions with regional practices, rationalizing tax rates for companies listed on the stock exchange, an enhanced tax credit for listed small and medium enterprises, unlocking the potential of private funds, and a variety of other ideas to help broaden the tax base and increase revenue collection.
The Finance Minister praised the MD Stock Exchange’s recommendations and stated that the current government is committed to strengthening financial markets and is ready to implement measures that will allow capital to flow to more productive sectors.
He went on to say that the government is considering implementing a new tax regime that is in line with the changing economic climate. He praised the proposals and promised that they would be taken into account in the upcoming budget.
Dr. Ishrat Hussain, Adviser to the Prime Minister on Austerity and Institutional Reforms, Dr. Waqar Masood, SAPM on Finance and Revenue, Chairman FBR, and Secretary Finance Division were also present at the meeting.