Confusion over the upcoming budget has eased after government sources clarified that no new tax is being imposed on the trading of shares of listed companies in the stock market.
However, a proposal is under consideration to introduce taxation on the purchase and sale of shares in private limited companies.
The clarification comes amid growing speculation about changes in capital market taxation in the new fiscal plan.
According to official sources, trading of shares listed on the Pakistan Stock Exchange will remain unchanged in the upcoming budget.
This means investors dealing in publicly listed companies will not face any additional tax burden on share transactions.
Proposed tax on private company shares
Sources further said that the government is considering a new tax on the transfer of shares in private limited companies.
The proposal is still under review, and no final decision has been announced yet. Officials indicated that the move is aimed at broadening the tax base by bringing certain non-listed transactions into the tax net.
There is also discussion about applying tax on share transactions that occur outside the National Clearing Company framework.
Market participants have pointed out that capital gains tax is already applicable on shares traded in the Pakistan Stock Exchange.
Financial expert Aqeel Karim Dhedi said there is currently no strong indication of a new tax being introduced on listed equity trading.
He added that imposing additional taxation on private limited company shares could also be difficult to implement in practice.
According to Karachi-based market commentary, there is little expectation of major disruption in the capital market from the upcoming budget measures.
Experts believe the government is cautious about introducing policies that could negatively impact investor confidence or trading activity.
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