Former Chairman of the then Securities and Exchange Commission Faruq Ahmed Siddique on Sunday proposed deferring the government’s plan to impose 3 percent tax on capital gains from share sales as the market is going through a ‘recovery stage’.
“Though it’s not illogical, it would be better if the government introduces it after one year, not now,” he told a post-budget discussion at the Jatiya Press Club.
Faruq Ahmed explained further saying a figure is not a big thing but a psychology works in the capital market which might give a wrong signal.
“I, in principle, support it. But is it the right time for imposing this tax? The capital market is now stable and it’s still going through recovery stage (after debacle),” he added.
The country’s capital market has gone through a chaotic situation in the last three years after the stock market crash, he observed.
He also said if the tax is imposed from the coming fiscal year it will not be a capital market-friendly decision.
The tax, which comes as part of government efforts to meet its ambitious revenue target, will be applicable for any investor whose capital gains exceeds Tk 10 lakh, and will be deducted at source.
Two stock exchanges — Dhaka Stock Exchange and Chittagong Stock Exchange — see such a proposal as an unfeasible plan.
Economic Reporters’ Forum (ERF) arranged the discussion titled ‘Budget for 2014-15: Will it boost growth and investment?’ with its President Sultan Mahmud in the chair.
Eminent economist and former finance adviser to a caretaker government Dr AB Mirza Azizul Islam spoke at the discussion as the chief guest.
Source: UNBConnect
