KARACHI, Sept 18: The board of directors of ABAMCO Limited — the asset management company of Unit Trust of Pakistan (UTP) — was apprised by the management that the CBR had clarified that the portion of dividend paid out of capital gains, would not be subject to income tax, a press release by ABAMCO issued on Wednesday said.

It stated that the board, which met on September 17, was told that out of the total dividend payment of Rs750 per unit (15 per cent), Rs134 per unit was payment from capital gains, which would not be subject to income tax.

Dispatch of dividend warrants to unit holders of UTP had commenced after receipt of clarification from CBR.

Jahangir Siddiqui, chairman, ABAMCO, resigned as director and chairman w.e.f September 17, and Habib ur Rehman was elected chairman in his place. Also Ali Jehangir Siddiqui was appointed director.