Home ›› 18 Jun 2020 ›› World Biz
The Dhaka Stock Exchange Brokers Association of Bangladesh (DBA), the apex body of brokers in the stock market, has demanded to reduce the advance income tax rate payable on broker house share transactions from 0.05% to 0.015% in the final budget.
The demand was made in a press release sent from DBA on Thursday (June 18).
In a statement, the organisation's president Sharif Anwar Hossain said brokerage houses, which rely solely on commission income, continue to lose money due to declining stock market transactions.
Many branch offices have been closed due to inability to meet their operating expenses. Numerous more branch offices have been closed. As a result, there is stagnation in the commercial activities of brokers.
The crisis at the brokerage house has reached a climax as Covid-19 has been closed for a long time, added Hossain.
the DBA president said, "In order to keep the brokers afloat in the overall development of the stock market, we have made a written recommendation to the Finance Minister to decrease the existing advance income tax on share transactions from 0.05% to 0.015%, considering the overall situation of brokers including the stock market and the possibility of adverse effect on business in the future due to Covid-19."
Meanwhile, the DBA has sought to revoke the proposed 3 (three) year lock-in for investing undisclosed funds in the stock market.
At the same time, it has demanded a tax rate of 5% instead of 10% on undisclosed investments. This will increase the investment of undisclosed money in the market. The market will be active and strong as liquidity flow increases.
The DBA has also demanded an increase in the tax-free limit on dividend income from Tk 50,000 to Tk 2 lakh and a 2.50% tax cut for listed companies such as unlisted companies. As a result, listed companies will be more active and prosperous in business.
The DBA believes this will directly benefit the stock market and investors as well as the economic development of the country.
