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Pakistani Government May Be Forced To Reconsider Share Purchase Tax

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

17 June 2004

According to reports in the international media, plans by the Pakistani government to levy a 0.1% tax on share purchases have been the cause of angry scenes at the country's main stock exchange in Karachi.

The BBC reported earlier this week that angry traders had smashed windows at the bourse in protest against the impending tax, and that the main share index fell 3.1% on Monday, following the announcement of the proposed levy in the budget at the weekend.

Critics of the plan have urged the authorities to consider either reducing the size of the levy, or to come up with an alternative way of collecting revenue from investment.

According to the BBC, the goverment has held talks with the Pakistani Securities and Exchange Commission on the matter, but the results of the discussions are not yet known.

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