Dhaka, Bangladesh (BBN)-The Dhaka Stock Exchange (DSE) made a six-point demand in its budget proposal for the fiscal year 2016-2017, including increase the ceiling of tax-free dividend income to BDT 100,000 from the existing BDT 25,000.
“Considering the present market scenario, small investors should be allowed for tax exemption up to BDT 100,000 on dividend income, as they have suffered a lot due to the market turmoil previously,” said Abdul Matin Patwary, chief financial officer and acting managing director of the Dhaka Stock Exchange (DSE), at a press briefing on Sunday held at the DSE premises.
Earlier on the day, they submitted their proposals to the National Board of Revenue (NBR).
The DSE also proposed to reduce tax at source on share transactions to 0.015 per cent from the existing 0.05 per cent considering the current volatile situation in the market.
“The reduction will ultimately enhance trade volume,” the premier bourse said.
The DSE, on behalf of the government, collects the tax at 0.05 per cent rate on the value of shares, mutual fund units or other securities transacted at a stock exchange, and deposit the revenue to the state coffer.
The prime bourse also proposed providing full tax exemption facility for five years, instead of existing partial exemption at graduated rates, for sustainable growth and smooth operation of the exchange, which is now incurring operating losses.
“Currently, the government is not getting any tax on the exchange’s income due to the exemption and hence, the 100 percent tax holiday will not affect the government’s revenue,” said Mr Matin.
DSE chairman Justice Siddiqur Rahman Miah, directors Ruhul Amin and Shakil Rizvi, were also present at the press briefing.
BBN/SK/AD