Thesis Report
RESEARCH METHODS
Impact of Capital Gain Tax on the Trading Volumes of KSE 30 Index
December 22, 2011
DR. AYUB MEHAR
RAHEEL MUHAMMAD HANIF
9273
ABSTRACT
The real democracy has not been very successful as far as inflation, and poverty is concerned, initiatives taken by Govt. are not being very popular, neither appreciated among the citizens. Karachi Stock Exchange, also refer as KSE is the largest capital market in Pakistan where middle class used to invest their saving and enjoy the dividends, and capital gains offered by the companies. In Jul 1 2010 Capital Gain tax was imposed by the Govt., since then, the volumes of Market have shrunken significantly. This has very much affected the additional income of common man.
The purpose of this report is to identify what are the effect and cause on this implementation.
The data and statistics in the report have been taken from Karachi Stock exchange and on to that the methodology.
Finally our finding that indeed CGT has adversely affected the trading volumes of stock exchanges as such that investor has to provide the National Tax Number to the authorities, when the total numbers of tax payers in the country are about ~2% of the entire population. This has caused a sense of insecurity among the investor who then find another areas to invest their saving resulting in pullout of capital from the capital markets.
Contents ABSTRACT 2 INTRODUCION 4 BACKGROUND: 4 IMPORTANCE OF RESEARCH: 4 OBJECTIVE OF RESEARCH: 4 REVIEW OF LITERATURE 5 METHODOLOGY 6 CONCLUSION: 7 RECOMMENDATION 8 REFERENCES & BIBLIOGRAPHY 9
INTRODUCION
BACKGROUND:
A country whose GDP growth is lowest in the region, unemployment and poverty is a big problem. New employment opportunities are merely none, while keeping the existing opportunities are also very difficult due to adverse law and order conditions; insufficient electricity; highest interest markups, among other factors. In 2010 Govt. of Pakistan
Impact of Capital Gain Tax on the Trading Volumes of KSE 30 Index
December 22, 2011
DR. AYUB MEHAR
RAHEEL MUHAMMAD HANIF
9273
ABSTRACT
The real democracy has not been very successful as far as inflation, and poverty is concerned, initiatives taken by Govt. are not being very popular, neither appreciated among the citizens. Karachi Stock Exchange, also refer as KSE is the largest capital market in Pakistan where middle class used to invest their saving and enjoy the dividends, and capital gains offered by the companies. In Jul 1 2010 Capital Gain tax was imposed by the Govt., since then, the volumes of Market have shrunken significantly. This has very much affected the additional income of common man.
The purpose of this report is to identify what are the effect and cause on this implementation.
The data and statistics in the report have been taken from Karachi Stock exchange and on to that the methodology.
Finally our finding that indeed CGT has adversely affected the trading volumes of stock exchanges as such that investor has to provide the National Tax Number to the authorities, when the total numbers of tax payers in the country are about ~2% of the entire population. This has caused a sense of insecurity among the investor who then find another areas to invest their saving resulting in pullout of capital from the capital markets.
Contents ABSTRACT 2 INTRODUCION 4 BACKGROUND: 4 IMPORTANCE OF RESEARCH: 4 OBJECTIVE OF RESEARCH: 4 REVIEW OF LITERATURE 5 METHODOLOGY 6 CONCLUSION: 7 RECOMMENDATION 8 REFERENCES & BIBLIOGRAPHY 9
INTRODUCION
BACKGROUND:
A country whose GDP growth is lowest in the region, unemployment and poverty is a big problem. New employment opportunities are merely none, while keeping the existing opportunities are also very difficult due to adverse law and order conditions; insufficient electricity; highest interest markups, among other factors. In 2010 Govt. of Pakistan
References: & BIBLIOGRAPHY http://www.brecorder.com/market-data/karachi-stocks/stock/568/?currExchange=K&currPageType=Y&currSector=0&currDate=2010-12-31&scrType=1280%7C800 http://www.kse.com.pk/index.php Month Day Year