Dhaka, Bangladesh (BBN): The Dhaka Stock Exchange (DSE) authorities urged the government on Sunday to attach due importance to the stock market which, he felt, could be a potential source of revenue to help meet the budget deficit.
The stock market can play an important role to meet the estimated Tk 550 billion deficit of the proposed budget for fiscal 2013-14, said DSE President Rakibur Rahman at a post-budget press briefing at his office.
He said the government could raise fund from the capital market instead of high bank borrowing for some of its development projects.
The DSE president suggested listing of the state-owned enterprises along with multinational companies with the stock market to collect funds.
The multinational companies should float shares valued at a sum of at least 20 per cent of their respective paid-up capital for betterment of the capital market, he said.
Mr Rahman thanked the government for its proposed incentives for the stock market. Terming the proposed budget capital market-friendly, he said the new incentives would make a positive impact on the capital market as well as on the investors.
The DSE president thanked the finance minister, for his plan to offer tax rebate to the bourses after their demutualization and to enact Financial Reporting Act.
However, he said there are no incentives for the corporate taxpayers. Rather the government has increased tax on listed mobile phone company and tobacco manufacturing companies. It will reduce their dividend paying capacity, affecting the market.
Mr Rahman said the minimum tax gap between the listed and non-listed companies should be 10 per cent. Otherwise the good companies will not be encouraged to be listed.
BBN/BB/AD/10June-13-10.20am (BST).
