- July 5, 2009
- Posted by: Atty. James Biron
- Category: Legal News
President Gloria Macapagal Arroyo signed into law a legislation removing the documentary stamp tax (DST) on secondary trading of shares, a move which could enhance stock market investment.
Philippine Stock Exchange (PSE) president and chief executive officer Francis Lim noted that this new law is important in developing a favorable business climate for investors despite the economic crisis currently affecting the global economy.
Lim said that the measure will facilitate in making the stock market more robust since it will attract more investors to put their money in high-yielding instruments.
“The law frees up liquidity which investors need in order to place their money in equities again, instead of paying DST. But more than just developing the market for the long-term, we are also aiding the government in enhancing the Philippines as an investment destination by increasing the competitiveness of our bourse relative to our Asian counterparts,” he said.
Before this law was signed, the secondary trading of shares was levied a DST equivalent to P0.75 for every P200 par value of a stock listed at the exchange.
