Special Correspondent :
Office bearers of the Dhaka Stock Exchange (DSE) have urged the government to bring changes in its tax policy for the publicly listed companies and bourses in the upcoming budget in order to infuse the much-needed vibrancy in capital market.
They made the plea on Tuesday at a meeting with Finance Minister AMA Muhith held at the latter’s Secretariat office in Dhaka.
DSE President Prof Dr. Abul Hashem, Directors Sharif Ataur Rahman, Md. Hanif Bhuiya and Minhaz Mannan Emon and Managing Director K.A.M. Majedur Rahman, CFO Abdul Matin Patwary, Manager Md Milon Miah, noted stock market broker Ahmed Rashid Lali, President of DSE Brokers Association (DBA) Mostaque Ahmed Sadeque and Director Ahmed Rashid were present at the meeting.
During the meeting, DSE directors also asked the minister for lowering of corporate tax to 15 percent for publicly listed companies for the next fiscal year 2018-19 to encourage more companies to enlist in the capital market. Currently, publicly listed companies have to pay a minimum of 25 percent and maximum of 40 percent tax based on their business category.
DSE earlier placed its budget proposal to the National Board of Revenue (NBR).
“Our meeting was mainly focused on our budget proposal,” DSE’s Managing Director K.A.M. Majedur Rahman told The New Nation while emerging the meeting.
He said the honourable minister gave a patience hearing to our proposals saying he would try his best to accommodate those in the next budget.
“The minister is very sympathetic to us. And we hope he will fulfill our budget wish list considering interest of the national economy as well as the need for boosting the capital market,” he added.
DSE’s budget proposals also include increasing the ceiling of tax-free dividend income up to Tk100,000 from the existing Tk25,000, reduction of reduce turnover tax to 0.015 percent from 0.05 percent.
The DSE has also sought a three-year tax holiday on sales proceed of shares as well as exemption from capital gain tax on block shares in the fiscal year 2018-19.
“Such tax breaks and measures would help increase the investment capacity of the country’s prime bourse, give a good shape of its ongoing reform activities and boost investors confidence,” said Majedur Rahman.
He said the DSE de-mutualisation scheme is a continuous process. We need the government’s all-out policy supports to complete the process successfully.
