Home ›› 14 Jun 2022 ›› Stock
The Dhaka Stock Exchange (DSE) has demanded to reduce a minimum 10 per cent gap in corporate tax between listed and non-listed companies in the new fiscal year starting next month.
“This will attract good companies to list on the stock exchanges,” said DSE Chairman Md Eunusur Rahman at a post-budget press conference in Dhaka on Monday.
Finance Minister AHM Mustafa Kamal on Thursday proposed to cut the tax rate to 20 per cent from the existing 22.5 per cent for listed companies that issue shares worth more than 10 per cent of their paid-up capital through an initial public offering (IPO).
He also proposed reducing the corporate tax rate for non-listed companies from 30 per cent to 27.5 per cent.
Speaking at the news conference, DSE Chief Executive Officer M Shaifur Rahman Mazumdar, “The corporate tax reduction will encourage multinational and good companies to get listed with the exchanges.”
However, the stock exchange welcomed the proposed national budget for fiscal 2022-23 saying that the measures proposed in the budget would bring a positive impact on the stock market in the long run.
The finance minister offered money launderers an opportunity to legalize undisclosed offshore assets. “The amnesty for money launderers might be good news for the capital market,” said the DSE chairman. The DSE also proposed to decrease the tax rate for small and medium enterprises by 10 per cent for five years from the date of listing.
The stock exchange also sought to reduce source tax to a maximum of 0.015 per cent on the value of the transaction. It also proposed to increase investors’ tax-free dividend income limit to Tk1 lakh from the existing Tk 50, 000.
The DSE also demanded all types of corporate bonds, such as zero-coupon bonds, to be tax-free, regardless of the investor.
It also urged the finance minister to cancel the double taxation on dividends.
DSE Directors Md Siddiqur Rahman and Sharif Anwar Hossain, and Managing Director Tarique Amin Bhuiyan were present at the conference.
