KARACHI: The Pakistan Stock Exchange (PSX) on Thursday said its 2021-22 budget proposals were aimed at boosting economic growth and addressing key structure imbalances in the country’s economy.

The core principle of the 14 proposals was to increase the size and depth of the capital market by incentivising new listings and increasing the investor base without impacting government revenues, the exchange said.

All PSX budget proposals essentially focus on impediments and disincentives that are negatively impacting the development of the capital market, as well as the documented corporate sector.

The exchange said that the recommendations were primarily designed to remove the disincentives, and the incidence of double and at times multiple taxation that were penalising capital formation. “Most proposals are revenue neutral and in many cases likely to increase the government’s revenue,” PSX said. Key points in the budget proposals include reform of CGT; rationalisation of tax rates of listed companies and SMEs; introduction of savings and investment accounts; documenting the real estate sector and promotion of REITS as well as introduction of long-term and consistent tax policies.

Published in Dawn, May 21st, 2021