ISLAMABAD: The government has withdrawn Final Tax Regime (FTR) for stock brokers on commission earned upon sale and purchase of shares.
Federal Board of Revenue (FBR) in explanation to recently amendment made to Income Tax Ordinance, 2001 through Finance Act, 2018.
The FBR said as per section 233A of the Income Tax Ordinance, 2001 a stock exchange registered in Pakistan is obliged to collect tax at 0.02 percent from its members upon the purchase and sale of shares in lieu of tax on commission earned by such members.
Prior to the Finance Act, 2018 the tax collected under section 233A of the Ordinance constituted final tax.
Pursuant to the Finance Act, 2018 the tax collected by a registered stock exchange in Pakistan under section 233A of the Ordinance from its members on the purchase and sale of shares in lieu of tax on commission earned by such members shall be adjustable in nature.