Cabinet Economic Committee to delay introduction of the capital gains tax

The Cabinet Economic Committee (KERM) has succumb to pressure from capital market groups and is to scrap the clause in the income tax draft bill calling for the introduction of a 5% capital gains tax for brokerages and intermediaries as of 2003. The government has also agreed to extend the capital gains tax exemptions for individuals until the end of 2002. The Security Issuers Association (SEG) has welcomed the response of the government, as it, along with such groups as the Confederation of Investment Funds Associations and the Association of Private Investors, were instrumental in urging the government to delay introducing the tax. (Parkiet, page 1)