Stock Brokers Association Says Tax Law Amendments Can Negatively Impact Market

The Pakistan Stock Brokers Association has said that the Tax Law (Amendment) Act, 2024, recently presented before the National Assembly could negatively impact the stock market and the investor community.  In a letter to Finance Minister Muhammad Aurangzeb, the Association said that among its provisions, several amendments to the Income Tax Ordinance, 2001, are being made, including a critical change of inserting a new section 114C regarding the restriction on economic transactions by certain persons.  The Association said that it appreciates the government’s efforts to document the economy and strengthen compliance mechanisms. However, if the proposed amendment is implemented without due consultation with stakeholders, it could negatively impact the stock market and the investor community, it added.  The Association has urged the minister to convene a meeting with the Pakistan Stock Brokers Association (PSBA), at an early date, to deliberate on the implications of this amendment and explore viable solutions that safeguard market integrity while achieving the desired policy outcomes.