Islamabad: The Securities & Exchange Commission of Pakistan (SECP) has submitted budget proposals to the Federal Board of Revenue (FBR) in relation to the upcoming Budget 2019-20, a news source reported. The budget proposals include measures for the documentation of the real estate sector and development of the capital market.
SECP has suggested that the FBR should align the rates of capital gains tax (CGT) on disposal of securities with rates of CGT on immovable property. According to sources, this measure can help ease the speculative pressure on real estate property prices in Pakistan, along with encouraging the documentation of real estate activities. It has been reported that most of the undocumented wealth is currently flowing towards speculative buying and selling in the real estate sector. This is why some of SECP’s submitted proposals are related to discouraging such activities.
SECP has also suggested to decrease the CGT rate on securities from 15% to 10%. The commission stated that the latter figure is more applicable to the real estate sector. The authority has submitted several other proposals for the Budget 2019-20.
The FBR has received the SECP’s budget proposals, and is now reviewing these as part of its ongoing budget preparation exercise.