SECP proposes CVT exemption on redeemable capital

To encourage the trading in modaraba certificates and instruments of redeemable capital at the stock exchanges, Securities and Exchange Commission of Pakistan (SECP) has proposed to remove Capital Value Tax (CVT) on purchase of modaraba certificates or any other instruments of redeemable capital in the budget 2011-12, official sources informed Friday.

SECP in it’s budget proposals has suggested the government to provide a level playing field and encourage trading in modaraba certificates and instruments of redeemable capital, the CVT on purchase of modaraba certificate and instruments of redeemable capital of a public company listed on a registered stock exchange should also be withdrawn.

From: Daily Times