Stocks Observer. com

ISLAMABAD: Working in conjunction with the Federal Board of Revenue, the Securities and Exchange Commission of Pakistan, through the Finance Act 2011-12, got the taxation regime for capital markets, corporate and non-banking financial sectors reformed. The SECP’s strategy encompasses continuation of reforms in the capital markets and corporate sector, deepening of structural reforms through removal of anomalies constraining economic activity, and to provide a level playing field to all the stakeholders, recommended various amendments to the 2001 Income Tax Ordinance, which were notified through the Finance Act 2011-12. The significant amendments are as follow: Tax Credit on Investment in new shares and for life insurance premiums/takaful contributions paid: To promote investments in initial public offerings (IPOs), the amount of eligible investment to benefit from tax credit on investment in IPO has been increased from existing Rs300,000 to Rs500,000. The percentage of the person’s tax