DSE, BMBA for keeping undisclosed money in capital market in next budget

The Dhaka Stock Exchange (DSE) and the Bangladesh Merchant Bankers Association (BMBA) on Thursday demanded of the government to extend the provision for investing undisclosed money in the capital market by another one year as such facility is going to end on June 30 this year.

The government earlier gave such facility in the current fiscal year’s budget to invest undisclosed money in the capital market giving tax at 10 percent in a bid to infuse dynamism in the economy to recoup the shock from the COVID-19.

This demand was raised by the DSE and BMBA at a pre-budget meeting with the NBR held at its conference room today.

Chief operating officer of DSE Saifur Rahman Majumder said if such facility is extended by another one year alongside reducing the concerned tax rate at 5 percent, then it would play an important role towards improving the capital market.

Besides, the NBR also held meetings with the leaders of financial institutions, banks, insurance, leasing companies and e ecommerce association today with NBR chairman Abu Hena Md Rahmatul Muneem in the chair.

The other proposals from the DSE include reducing the tax rate of the publicly listed companies at 17.50 percent, that of the bank and financial institutions at 32.50 percent, and those of the mobile phone operator companies at 35 percent.

Besides, they also demanded for imposing tax at a reduced rate for six years when a new company gets listed with the capital market, and reducing the dividend on income from the stock market at one third from the existing rate.

On behalf of the bankers association, NRBC Bank chairman Parvez Tomal demanded of the government to further reduce the corporate tax rate adding that 40 percent tax rate is still high in international standard.

Besides, he expressed his reservation on realizing Advance Income tax (AIT), demanded for giving a guideline for CSR, and bringing balance in treasury invoices.

E commerce association president Shomi Kaiser placed a 16-point recommendation including to reduce the mandatory tax on sale under this sector at 0.1 percent from the existing 0.6 percent, including this sector into IT enabled services, cancelling realization of VAT twice, withdrawing VAT on product delivery charges, and reducing VAT on the income of delivery firms at 5 percent.

In response, the NBR chairman expressed his resentment as most of the e-commerce firms remained without registration.

“We could receive information about 10% e-commerce firms and there is no whereabouts about the rest of 90% e commerce firms. We can’t let go these 90 percent firms while giving facility to 10% firms. There is no such provision from the government to provide licenses against these firms.”

He also suggested for bringing these firms under a same platform.