Stakeholders have demanded 100 percent tax holiday for capital market for five years to stimulate it.
They made the demand at a pre-budget discussion with the National Board of Revenue (NBR) at its office in Dhaka on Monday.
Representatives of stock exchanges, non-bank financial institutions, insurance companies, merchant banks and ministries of finance and industries attended the discussion, chaired by NBR Chairman Nojibur Rahman.
Representatives from financial sectors also demanded cut in rates of different taxes for them.
Dhaka Stock Exchange Chairman Siddiqur Rahman Miah said at the discussion, “We’re seeking all-out cooperation from the revenue board for development of the capital market and making its more vibrant.
“The post-demutualisation capital market has been offered five-year tax holiday at declining rates. I’m proposing 100 percent tax holiday for five years,” he said.
The government, in a circular on Jun 24 last year, had announced the tax holiday on income from capital market.
According to the circular, 100 percent tax holiday would be offered for the first year and the rate would be 80 percent, 60 percent, 40 percent and 20 percent for the second to fifth years respectively.
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Bank and Financial Institutions Division Joint Secretary Shafiqul Islam said, “Capital market is now in a bad condition. I think measures need to be taken as much as possible for stimulating the market.”
Bangladesh Merchant Bankers Association (BMBA) Vice-president Akter H Sannamat demanded cut in corporate tax to 15 percent from present 37.5 percent for the sector.
Bangladesh Insurance Association Vice-president Ahsanul Islam Titu proposed withdrawal of 5 percent gain tax on policy bonuses.
Source: Bd news24
