Thursday, May 30, 2024

DSE seeks 50pc cut in income tax for new retail investors

The Dhaka Stock Exchange on Saturday demanded introduction of a new scheme allowing 50 per cent rebate on income tax for new small-scale investors with investment up to Tk 1 lakh in initial public offerings or securities at the secondary market.
The scheme will have to a lock-in period for three years and the facility will be available for those investors whose annual income is below Tk 15 lakh, DSE proposals stated.
‘We demanded introduction of the scheme to improve the depth of the capital market and to improve flow of savings to the market,’ DSE chief executive officer Swapan Kumar Bala said at a pre-budget discussion with the National Board of Revenue at the NBR headquarters in the city.
New and small-scale investors will be benefited if the NBR introduces the scheme, he said adding that neighbouring India introduced such scheme in the last fiscal year.
The Bangladesh Securities and Exchange Commission and the Chittagong Stock Exchange also supported the DSE proposals.
At the meeting, the DSE and the CSE also demanded reduction in taxes on capital gains for companies and firms step by step based on the years of holding shares in the market and giving full waiver for those who hold shares for more than three years.
The two stock exchanges in the country also sought tax exemption for small-scale investors on income from dividend up to Tk 50,000 from the existing Tk 5,000.
‘We have placed the demands to inspire long-term investment by institutional investors and attract small investors to invest in the capital market to make the market stable,’ said Swapan.
He said that the situation of the capital market would improve if the NBR accept the proposals.
Currently, companies have to pay 10 per cent capital gains tax on their income derived from share transactions in the capital market.
The DSE proposed reducing the rate to 5 per cent for holding shares for 1 to 2 years, 2 per cent for holding shares for 2-3 years and zero per cent for holding shares for more than 3 years.
The CSE, however, proposed reducing the rate to 7.5 per cent for holding shares for 1-2 years, 5 per cent for holding shares for 2-3 years and zero per cent for holding shares for more than three years.
Swapan said that such tax rate based on period of holding shares would encourage the institutional investors to invest for long period of time.
The DSE also demanded a special allocation amounting to Tk 5,000 crore in the next budget for the capital market stabilisation.
The fund will be utilised in extending loan on refinancing basis to the investors at concessional interest rate, it said.
It also demanded enactment of the proposed financial reporting act and establishment of financial reporting council to facilitate the transparency and accountability of the auditors of listed companies.
The DSE, country’s leading bourse, also demanded reduction in corporate income tax rate to 32.5 per cent for publicly listed banks, insurances and financial institutions and 37.5 per cent for non-listed ones from the existing 42.5 per cent.
‘There is no possibility of revenue fall because of reduction in corporate tax rate for banks, insurances and non-banking financial institutions as such companies are showing higher profit every year,’ it said.
On the other hand, companies will be able to declare more dividends for shareholders and eventually the general investors will be benefitted, it said.
The DSE also suggested that the NBR should reduce the rate of advance income tax of individual taxpayers (resident and non-resident Bangladeshi) on income from dividends from the existing 10 per cent and treat it as final discharge of tax liability.
The DSE and the CSE also demanded continuation of tax exemption for stock exchanges for at least five years after demutualisation.
BSEC executive director Farhad Ahmed requested the NBR to consider the proposals placed by the DSE and the CSE to stabilise the market.
NBR chairman Ghulam Hussain said that revenue board would consider the proposals.
NBR members Syed Aminul Karim and Jahangir Hossain, and CSE president Al Maruf Khan spoke, among others, at the meeting.

-With New Age input

Related News

Emirates eliminates online payment limit for flights in BDT

Business Desk : dhakamirror.com Emirates has made online payment more convenient for customers purchasing tickets in Bangladesh. Now, customers can use locally issued debit and credit cards to complete payment transactions online for flight tickets and enjoy the convenience of unlimited transactions in BDT. Customers can enjoy the ease of paying for tickets on emirates.com, ... Read more

Aziz Khan next chair of Unicef Int’l Council

Business Desk : dhakamirror.com Unicef has announced Muhammed Aziz Khan as the incoming chair of the Unicef International Council, succeeding the inaugural chair, Maria Ahlstrom-Bondestam. He will assume the position in November this year, a press release issued by Unicef said yesterday. The Unicef International Council is a unique community of approximately 150 private philanthropists ... Read more

NJ Diamonds brings vibrant luxury jewelry to Bangladesh

Business Desk : dhakamirror.com NJ Diamonds, a new luxury jewelry brand, has officially launched in the capital at Banani road 11. The event was a glittering affair, attended by top influencers and industry elites, marking a significant milestone for the Bangladesh jewelry market. NJ Diamonds, founded by Noorjahan Abdullah & Labiba Abdullah, are set to ... Read more

NCC Bank celebrates 31 years of operations

Business Desk : dhakamirror.com NCC Bank celebrated its 31 years of operations at the bank’s head office in Dhaka on Friday. Md Abul Bashar, chairman of the bank, inaugurated the 31st anniversary programme, said a press release. NCC Bank started its journey on May 17, 1993. “During the 31 year-long-journey, the bank played a remarkable ... Read more

21 winners receive gifts from Nagad’s mega campaign

Business Desk : dhakamirror.com A total of 21 winners have received different gifts by taking part in the country’s biggest transactions campaign – initiated by Nagad, a popular mobile financial service provider. Recently, Nagad’s Senior Executive Vice-President and Chief Marketing Officer Sadat Adnan Ahmad and Executive Vice-President and Deputy Chief Marketing Officer Muhammad Solaiman handed ... Read more

Hatil Chairman Selim H Rahman honoured with CIP award

Business Desk : dhakamirror.com Selim H Rahman, the esteemed Chairman and Managing Director of HATIL, a leading name in the furniture industry, was conferred with the prestigious Commercially Important Person (CIP) award for his pioneering contributions to the export of the furniture sector. The ceremony held at the Radisson Blu Water Garden Hotel, Dhaka, on ... Read more

Emirates announces first destinations for A350 service

Business Desk : dhakamirror.com Emirates has announced the first set of destinations to be served by its A350 aircraft entering service in September 2024. The airline plans to deploy its latest aircraft type to 9 destinations in the coming months, offering customers its latest signature cabin experiences.10 new A350s are expected to join the Emirates ... Read more

Adidas nearly ready to open outlet in Dhaka

Business Desk : dhakamirror.com Adidas, the German athletic apparel and footwear giant, is set to open its first outlet in Bangladesh this month at Gulshan-1 in the capital. The three-stripes will partner up with leading local conglomerate DBL Group, which will facilitate its entry into the Bangladesh market. “We have planned a soft launch on ... Read more

Shwapno opens new outlet in Pabna

Business Desk : dhakamirror.com Popular retail chain shop “Shwapno” has opened a new outlet in Pabna’s Sujanagar at Molla Super Market. The inauguration took place at 5:30pm on 30 December, reads a press release. Present at the event were Ahmed Firoz Kabir, Member of Parliament for Pabna-2 (Sujanagar, Aminpur), Chairman Shahinujjaman Shahin of Sujanagar Upazila, ... Read more

Shwapno launches new outlet at Bashundhara

Business Desk : dhakamirror.com Shwapno, the largest retail chain in Bangladesh, launched an outlet in the Bashundhara area on Thursday offering a month-long discount with a home delivery facility. On behalf of Bashundhara Group, media advisor Mohammad Abu Tayeb inaugurated the outlet as guest of honour at the Rupayan shopping centre in the residential area, ... Read more

With ‘Face ID’ and ‘Fingerprint’ login bKash app is now more secure, user-friendly

Business Desk : dhakamirror.com bKash app introduces biometric ‘Face ID’ and ‘Fingerprint’ login features to make users’ daily transactions easier and safer. Alongside, exciting new features – ‘Group Send Money’, ‘Request Money’, ‘Savings Marketplace’ and selecting ‘Default Card’ to use the ‘Add money’ service from VISA card to bKash – are also included in the ... Read more

Grameenphone wins ‘Bangladesh Sustainability Excellence Awards 2023’ in Financial Inclusion

Business Desk : dhakamirror.com It was an evening to rejoice and remember for Grameenphone at the Bangladesh Sustainability Excellence Awards 2023, as the organization’s sincere efforts with flagship initiatives GP Accelerator and GP Academy received due recognition. Renowned media house The Daily Star, along with CSR Window, honored the winners at the Bangladesh Sustainability Excellence ... Read more

Banglalink wins the best sustainability award

Business Desk : dhakamirror.com Banglalink has won the ‘Best Sustainability Excellence Initiative’ award in the ‘Disaster Response’ category at the ‘Bangladesh Sustainability Excellence Awards 2023,’ jointly presented by The Daily Star and CSR Window Bangladesh. The award is in recognition of Banglalink’s contribution to societal welfare through the innovative integration of an Early Warning System ... Read more

StanChart wins Mastercard Excellence Awards

Business Desk : dhakamirror.com Standard Chartered Bangladesh has clinched awards in three categories at the “Mastercard Excellence Awards 2023”. The categories are “Excellence in Mastercard Contactless (Issuing)”, “Excellence in Mastercard Credit Business (International)”, and “Excellence in Mastercard Business (Innovation)”. Naser Ezaz Bijoy, chief executive officer of the multinational bank, received an award from Atiur Rahman, ... Read more

Nagad wins Mastercard Excellence Award 2023

Business Desk : dhakamirror.com Nagad, a popular mobile financial service provider in Bangladesh, has clinched “Mastercard Excellence Award” 2023 for its contribution to credit card bill payments. The mobile money carrier has been honoured with this prestigious award as the “Master Evolution”, reads a press release. On behalf of his company, Nagad’s Executive Director Maruful ... Read more

Prime Bank clinches Mastercard Excellence Awards 2023

Business Desk : dhakamirror.com Prime Bank PLC, a leading private commercial bank of the country, has won Mastercard Excellence Awards 2023 for Debit Business (Domestic) category. Nazeem A Choudhury, deputy managing director of the bank, and Masudul Haque Bhuiyan, head of Cards & Alternative Delivery Channel, received the award from Dr Atiur Rahman, former governor ... Read more

Zakia Rouf Chowdhury elected as vice chairman of Bank Asia

Business Desk : dhakamirror.com Zakia Rouf Chowdhury has been elected as Vice Chairman of Bank Asia Limited recently at the 508th meeting of the Board of Directors of the bank. She has an illustrious business career of more than 35 years in the private sector of Bangladesh. Since inception, she has been holding leadership positions ... Read more

Yamaha celebrates 7 years with ACI Motors

Business Desk : dhakamirror.com ACI Marts is the sole distributor and technical collaboration partner of Yamaha motorcycles in Bangladesh. ACI Motors started its journey in 2007 as a subsidiary of renowned company ACI Limited. In 2016, Yamaha started a new journey in Bangladesh with ACI Motors. At present, more than 116 Yamaha 3S (Sales, Service ... Read more

Walton boosts TV exports to Denmark, Ireland

Business Desk : dhakamirror.com Bangladeshi global electronics brand Walton has boosted up its exports of television to Denmark, Ireland and other European countries as the demand of Walton television goes high in those countries in recent times, according to a press release. Walton Global Business Unit’s Vice-President Syed Al Imran said that Walton has been ... Read more

Mutual Trust Bank launches privilege centres in Dhaka

Business Desk : dhakamirror.com Mutual Trust Bank Ltd recently launched its two revamped privilege centres in Dhanmondi and Uttara celebrating “MTB Retail Fest 2023”. Syed Mahbubur Rahman, managing director and CEO of the bank, inaugurated the centres as the chief guest, said a press release. Privilege Banking customers enjoy a wide range of exclusive benefits, ... Read more