The federal government is reportedly evaluating a proposal to introduce a new transaction tax on the buying and selling of shares at the Pakistan Stock Exchange as part of revenue-generation measures in the upcoming federal budget.
According to reports circulating in the stock market, authorities are considering imposing a 0.1 percent tax on share purchases and sales. The proposed levy is aimed at increasing government revenue from stock market activity while maintaining a relatively low tax rate.
If the proposal moves forward, it will require approval from the federal cabinet and the prime minister before being included in the FY2026-27 budget.
The reports prompted a cautious response from investors on Monday, with market participants closely monitoring developments regarding potential taxation changes. However, a senior Karachi-based stockbroker described the reports as speculative, stating that the proposal remains an unconfirmed market rumor at this stage.
Currently, investors are already subject to Capital Gains Tax (CGT) on the disposal of listed securities. Government data shows that CGT collections totaled approximately Rs. 72 billion last year.
In addition to CGT, stock market participants also pay several other taxes, including taxes on dividends and bonus shares, sales tax on services imposed by provincial governments and the Islamabad Capital Territory, as well as super tax in applicable cases.
The proposal is being discussed ahead of the federal budget announcement, as the government explores new avenues to enhance revenue collection while meeting fiscal targets and economic commitments.
