Equity LTCG Tax Remains 12.5% for All Investors Including FPIs

When questioned about differential treatment for foreign portfolio investors (FPIs), the minister clarified that the 12.5% LTCG tax applies uniformly to FPIs, domestic, and retail investors on equity gains. However, under the Income Tax (Amendment) Ordinance, 2026, a specific exemption was introduced for interest and capital gains earned from government securities held by FPIs, offering tax relief only for those instruments. The broader equity LTCG rate, nonetheless, stays the same across all investor categories.