The Finance Bill 2016 laid before the National Assembly on Friday by Federal Finance Minister Ishaq Dar proposes to enhance the rate of tax on shares and bonds, i.e., securities by 2.5 percent for tax year 2016 and imposes a levy of 5 percent on future commodity contracts of members of Pakistan Mercantile Exchange. The rate of tax to be paid under section 37A shall be as follows:

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S.No. Period                  Tax Year  Tax Year      Tax   Year 2017

                                  2015      2016    Filer   Non-Filer

(1)   (2)                          (3)       (4)      (5)         (6)

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1.    Where holding              12.5%       15%      15%         18%

      period of a security

      is less than twelve

      months

2.    Where holding                10%     12.5%    12.5%         16%

      period of a security

      is twelve months

      or more but less

      than twenty-four

      months

3.    Where holding                 0%      7.5%     7.5%         11%

      period of a security

      is twenty-four

      months or more

      but the security

      was acquired on or

      after 1st July, 2012

4.    Where the security            0%        0%       0%         0%"

      was acquired

      before 1st July,

      2012

5.    Future commodity              0%        0%       5%         5%;

      contracts entered

      into by the

      members of

      Pakistan

      Mercantile

      Exchange

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