The Dhaka Stock Exchange (DSE) on Tuesday sought full tax exemption of its income for 10 years.
“The de-mutualisation scheme is a five-year government approved continuous process. So, the government should give full tax exemption facility till FY25 under the scheme to help the bourses continue their ongoing reform activities and build infrastructure investment capacity,” said the budget proposals of DSE.
It made 11-point budgetary proposals and sent those to Finance Minister AHM Mustafa Kamal.
The stock exchange also demanded a cut in the corporate tax rate for the listed companies to attract non-listed firms to the market.
DSE proposed to reduce the corporate tax to 20% from the existing 25% for the listed companies. It sought to reduce tax rates of publicly traded banks, insurance companies and financial institutions to 32.5% from the existing 37.5%.
DSE Managing Director Kazi Sanaul Hoq said in the proposals that they proposed Tk 2,00,000 in place of existing Tk 50,000 to be excluded in terms of tax exemption from the dividend of total income of investors in the share market.
The stock exchange urged to include Covid-19 charities as tax allowable expenses and reduce standard VAT rate to 9% from the existing 15%.
The bourse has proposed the reduction of tax at-source to 0.015% from the existing 0.05% on commission, realised by the stock brokers against transaction of shares, debentures, mutual funds, or securities.
DSE sought allowing payment of interest or profit of listed bonds without deducting tax at source similar to Government Treasury Bond.
Sanaul Hoq said in his letter, “ We request to include the proposals for DSE, TREC-holders, general investors and listed companies in the upcoming national budget 2020-21 to ensure sustainability, viability, credibility and liquidity of the capital market".
