The National Clearing Company of Pakistan Limited (NCCPL) has issued a notice detailing revised Capital Gains Tax (CGT) rates that will apply from July 1, 2025, in line with amendments to the Income Tax Ordinance, 2001, introduced through the Finance Act 2025.
The changes affect various markets, including the Pakistan Stock Exchange (PSX), Pakistan Mercantile Exchange (PMEX), and mutual funds under MUFAP.
For the PSX, CGT rates now depend on the acquisition period of securities and the holding duration, with different rates for investors listed on the Active Taxpayers List (ATL) and those not. Securities acquired before July 1, 2013, remain tax-exempt. For securities acquired between July 1, 2022, and June 30, 2024, progressive rates ranging from 12.5% to 0% apply based on holding periods. A flat 15% rate applies to securities acquired from July 1, 2025, onward, regardless of ATL status.
For PMEX, a flat 5% CGT rate will apply to both ATL and non-ATL investors, irrespective of the acquisition date, starting July 1, 2025.
In mutual funds (MUFAP), stock and other fund categories will follow similar flat-rate structures. A 15% CGT will apply to both ATL and non-ATL investors acquiring securities after July 1, 2025. Prior to this date, non-ATL investors will face significantly higher rates, reaching up to 50% for company holdings in other funds.
Additionally, a Super Tax under Section 4C will be imposed on capital gains income across all markets, based on progressive slabs starting at 0% for income up to Rs150 million and increasing to 10% for income exceeding Rs500 million.
