Pakistan Stock Exchange (PSX) is expected to hit to an all-time high of 55,000 points by the end of December 2021 in the wake of acceptance of its longstanding demand for reducing capital gains tax (CGT) on sales of shares at the bourse.
The announcement of a pro-growth budget for the next fiscal year starting July 1, 2021, which includes incentives and reduction in tax rates for different sectors of the economy, would extend much-needed support to the bourse and take the benchmark KSE-100 index to new highs.
The PSX’s benchmark index touched a record high of 52,876.46 points four years ago on May 24, 2017.
“It is proposed to reduce the rate of capital gains tax to 12.5% (on sales of shares at the PSX) from the current 15% to ease the hardships faced by the stock market over the last two years in the wake of Covid-19 pandemic,” Finance Minister Shaukat Tarin said while presenting the budget for next fiscal year 2021-22 in the National Assembly on Friday.
