Stocks extended gains on Friday amid hopes that the government will announce the removal of a capital gains tax in the upcoming 2011/12 budget, dealers said. The 2011/12 (July-June) budget is due to be unveiled on June 3. According to media reports, the government may decide to remove the capital gains tax. A 10 percent capital gains tax is imposed on stocks held for six months or less and 7.5 percent on stocks held between 6 months to a year.
Officials from the finance ministry have declined to comment. “There is a feeling in the market that the capital gains tax will be removed, and this is helping the sentiment,” said Mohammed Sohail, chief executive of brokers Topline Securities. “This hope is likely to keep the market positive in the sessions ahead of the budget, and if indeed the tax is removed, it should result in increased activity in the market,” he said.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.22 percent, or 27.40 points, higher at 12,225.22 on turnover of 79.64 million shares. In the currency market, the rupee eased 85.65/75 to the dollar from 85.57/a day earlier, amid slightly higher dollar demand from importers.
It was dark when I woke. This is a ray of snuisnhe.