KARACHI, Nov 12: The Karachi Stock Exchange (KSE) forwarded a letter to the Prime Minister on Monday, seeking exemption period for levy of capital gains tax (CGT) and lifting the limit under continuous funding system (CFS).

Those proposals were made to the Prime Minister, Shaukat Aziz on Friday, by the KSE board of directors in a meeting in Karachi.

A member of the board who attended the meeting said that the PM assured the delegation that their genuine grievances would be promptly addressed. He also asked the KSE to submit proposals in writing for consideration of the government.

The KSE is seeking enhancement of the upper limit of CFS, which currently stands capped at Rs55 billion. “This will improve liquidity in the market,” the member says.

He also said that the delegation requested the PM to announce extention in period of exemption of CGT, which is to expire at the end of June 2008.

The KSE explained to the PM that the CGT exemption if announced for a longer period — instead of year to year — would be helpful for both local and foreign investors in preparing their long-term investment strategy, the member said.