DSE wants reflection of four issues in final budget

Though there is nothing new for the capital market in the proposed budget for the fiscal year 2023-24, the Dhaka Stock Exchange (DSE) has again brought forward four issues in the final budget that it expects to be implemented.

After the proposed budget, DSE has recommended tax exemption on interest income on bonds, tax deducted at source only on dividend income, reduction of tax at source on track holders, and taxation of companies at a concessional rate on SME boards, which are expected to be reflected in the final budget on June 30, said a press release issued on Saturday.

Welcoming the proposed budget, the circular signed by DSE Deputy General Manager Shafiqur Rahman said that the budget has been prepared with an aim to accelerate the economy through development and production-oriented activities.

“DSE Chairman Prof Dr. Hafiz Muhammad Hasan Babu has hailed the budget proposal as the budget for the fiscal year 2023-24 proposes policies and management strategies to build a happy, prosperous, developed, and smart Bangladesh by 2041.”

A vibrant bond market can help boost the economy in several ways, DSE said in a joint presentation on the bond market. “If all types of bonds are exempt from tax, this will help prop up the bond market.”

Companies pay dividends out of after-tax profits. In fact, taxing dividends is a type of second-and third-level taxation. It is noted that investors will be encouraged to invest if tax at source on dividends is considered as a final tax.

Finance Minister AHM Mustafa Kamal announced a Tk 761,785 crore budget for the fiscal year 2023-24 in the parliament on June 1, 2023.