KSE directors meet Tareen today

Govt agreed to cut FED to 9pc: sources
Nawaz Ali
KARACHI: A meeting of Board of Directors of Karachi Stock Exchange with Advisor to Prime Minister on Finance Shaukat Tareen is scheduled to take place Tuesday (today) to discuss the confusion among the brokerage community regarding the collection of federal excise duty.
It should be noted that government has imposed a 16 per cent FED on the commission of the brokers in the budget and had removed the previous capital value tax (CVT). According to details there were several confusions among the brokers of the exchange on the collection of the said FED as different members have different commission rates. Therefore the directors are set to meet finance advisor to discuss the procedure to collect the duty. Besides, TFD learnt from a reliable source that the government has agreed to reduce the 16 per cent federal excise duty (FED) on brokers' commission to 9 per cent. The decision according to experts will have a positive impact on the market and the cost of transaction will reduced. However some of the brokers were also of the view it will also be discussed in the meeting to withdraw the newly imposed FED from the brokers' commission and revive the old CVT.