Dhaka, Bangladesh (BBN): The country’s bourses have proposed the government to offer tax-exemption for small investors who earn profit below BDT 50,000 from capital market and cut corporate tax for banks, insurances and financial institution (FI) by 5.0 per cent.
In their budget proposals for fiscal year 2013-14, the members of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) also requested to introduce three tier tax-slabs to collect capital gain tax from institutional investors to encourage long-term investment. Currently, institutional investors are paying 10 per cent tax on capital gain.
They placed the budget proposals to the National Board of Revenue (NBR) on Saturday. NBR chairman Ghulam Hussain chaired the meeting and assured the directors of the bourses to examine their proposal for upcoming budget.
CSE president Al Maruf Khan, DSE Chief Executive Officer (CEO) Dr Swapan Kumar Bala, Bangladesh Securities and Exchange Commission (BSEC) executive director Farhad Ahmed attended the meeting with the revenue board.
Stock exchange members urged the NBR to give tax incentive to encourage new investment in share market. They also urged to cut at source tax for brokerage houses to 0.015 per cent from 0.05 per cent.
The bourses sought tax holiday facility for five to seven years as they claimed that stock exchanges will be turned into non-profit organization after demutualisation.
Both the bourses proposed to cut corporate tax for the listed banks, insurance and FIs to 37.5 per cent from 42.5 per cent.
They proposed a reduced rate of tax at 7.50 per cent for the investors who will hold share for one to two years followed by 5.0 per cent for two to three years and zero for three years.
BBN/BB/AD/05May-13-10.58pm (BST).