The National Clearing Company of Pakistan Limited (NCCPL) has issued a notice outlining the revised Capital Gains Tax (CGT) rates applicable from July 1, 2025, in line with amendments made to the Income Tax Ordinance, 2001, via the Finance Act 2025.
These changes apply to various markets including the Pakistan Stock Exchange (PSX), Pakistan Mercantile Exchange (PMEX), and mutual funds under MUFAP, according to a notice issued by NCCPL.
For the Pakistan Stock Exchange (PSX), CGT rates now vary based on both the acquisition period of securities and the holding duration, with separate rates for investors appearing on the Active Taxpayers List (ATL) and those not.
Securities acquired before July 1, 2013, remain tax-exempt.
Progressive rates apply to securities acquired between July 1, 2022, and June 30, 2024, ranging from 12.5% to 0% depending on the holding period, while a flat rate of 15% applies to securities acquired on or after July 1, 2025, regardless of ATL status.
For PMEX, a flat CGT rate of 5% will apply across both ATL and non-ATL investors regardless of the acquisition date from July 1, 2025.
In mutual funds (MUFAP), stock funds and other fund categories follow similar flat-rate structures, with a 15% CGT applicable to both ATL and non-ATL investors acquiring securities on or after July 1, 2025.
Prior to this date, the rates are significantly higher for non-ATL investors, reaching up to 50% for company holdings in other funds.
A Super Tax under Section 4C will also be levied on capital gains income across all markets, based on progressive slabs starting from 0% for income up to Rs150 million, and going up to 10% for income exceeding Rs500m.
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