KARACHI  - Leading market players have welcomed the decision to remove withholding tax (WHT) on broker’s commission and freezing of current CGT rates on securities trading till June 2014.  Responding to the decision of Finance Minister Dr Abdul Hafeez Shaikh for accepting proposals of SECP to enhance trade volumes in the stock market, a leading broker Aqeel Karim Dedhi said that it will increase the volume ten times.

This is a good move which will enhance the confidence of the investors in the market and bring in more investment in Pakistani market, he added.

He said the impact of this decision will be witnessed in the market from next Monday, he added.

AKD said that volumes had dropped to lowest levels due to levy of CGT and double taxation in the form of withholding tax. 

Another leading broker Arif Habib said WHT was a double taxation and it was the public demand to remove it. We are now at par with other commodity markets in the country, he noted.  He said that trade volumes will surge to 200 million from next week and go up gradually.

Habib hoped that new investment will come to the market after the freezing of CGT. He noted that withdrawal of restriction about the source of income will also help bring in investment in the market.  Elected director of KSE board Zafar Moti said that this is a good move, but it will depend on the modus operandi how this is being done.