ISLAMABAD (June 29 2004): The Central Board of Revenue (CBR) has accepted a major demand of stock exchanges to deposit capital value tax (CVT) and withholding taxes by 25th of every month.
CBR sources told Business Recorder that the committee on CVT issue comprising M S Lal, Member Tax Policy and Reforms; Shahid Ghaffar, Commissioner, SECP; Moin M Fudda, Managing Director, Karachi Stock Exchange (KSE), Hamid Imtiazi Managing Director, Lahore Stock Exchange (LSE), Aftab Ahmed Chaudhry, Managing Director Islamabad Stock Exchange (ISE) and Omer Iqbal Pasha, Chairman, ISE, met here on Monday.
It was decided that the stock exchanges would deposit monthly tax deductions by 25th of each month. For this purpose, the stock exchanges would introduce necessary changes in their software for collection of taxes on daily transactions.
The CBR would issue an income tax circular in the first week of July 2004 to clarify taxation issues pertaining to stock exchanges. CBR Member Direct Taxes would develop the modalities of payment and collection of CVT, sources said.
The CBR would empower the stock exchanges to operate as withholding agent for collection of taxes from members by 25th of each month, they added.
