ISLAMABAD: The Federal Board of Revenue (FBR) has constituted a five-member consultative committee on capital market tax reforms.
According to documents available with this scribe, the Inland Revenue-Policy Member would be the chairperson of the committee, whereas Securities & Exchange Commission of Pakistan (SECP) Commissioner Shauzab Ali, Pakistan Stock Exchange (PSX) CEO Farrukh Khan, PSX CFO Ahmad Ali Mitha and Income Tax-Policy Chief would be the members of the committee.
“The committee shall act as a forum — till budget making exercise for the year 2021-22 — to review tax policies and suggest specific short-term and medium to long term measures for the development of debt and equity market, commodity futures, mutual funds, REITs, corporate and insurance sectors, among others,” a statement issued by the FBR read. “Broadly, it will review and recommend all measures that impinge upon the capital markets and its stakeholders.”
In addition, the committee may invite proposals from relevant stakeholders, deliberate and finalize tax reforms in the aforementioned areas.
The proposals shall be categorized into immediate, medium term and long-term reforms and shall accordingly be prioritized.
The first report of the committee shall be submitted to the FBR within 20 days of its constitution and necessary amendments to the tax laws shall be initiated in consultation with the committee for implementation of the agreed proposals.
The TOR may be evolved and changed by the committee members as needed in view of the experience gained.