PRE-BUDGET MEETING FY 2013-14
DSE seeks Tk 5,000cr fund for ailing market
The Dhaka Stock Exchange, country’s premier bourse, on Sunday demanded that the National Board of Revenue allow tax exemption facility for
five years for the organisation after its demutualisation.
DSE also urged the government to form a fund of Tk 5,000 crore for the stock market in the upcoming budget for capital market stabilisation.
At a pre-budget meeting with the NBR, DSE leaders sought the exemption so that the DSE can run smoothly after its demutualisation as the organisation will be turned into a private limited and profitable company from its current status of non-profit organisation.
DSE senior vice-president Ahmed Rashid Lali placed the proposals.
He said, ‘We should make the DSE profitable and attractive to new shareholders as around 60 per cent shareholders will be from outside.’
DSE also urged the government to form a fund of Tk 5,000 crore for the stock market in the upcoming budget for capital market stabilisation.
It 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.
It said that there was no possibility of fall in revenue collection because of a reduction in corporate tax rate for banks, insurances and NBFIs as such companies are showing higher profits every year.
Moreover, it stated that the companies would be able to extend higher dividends, and eventually, general investors would be benefitted.
The premier bourse also demanded cut in taxes on capital gains for companies, which currently pay 10 per cent to the NBR on incomes derived from share transactions.
The stock exchange also 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 said.
It also sought tax exemption for small-scale investors on income from dividend up to Tk 50,000 from the existing Tk 5,000.
NBR chairman Ghulam Hussain said that revenue board would consider the proposals.
NBR member Syed Aminul Karim, DSE president Rakibur Rahman and DSE chief executive officer Swapan Kumar Bala spoke, among others, at the meeting.
-With New Age input
