The Dhaka Stock Exchange (DSE) has urged that the corporate tax rate differential between listed and non-listed companies be increased because it believes that if it is not, many companies will be discouraged from entering the capital market.
The corporate tax rate differential between listed and non-listed companies is now 7.5 per cent. The country’s major stock exchange called for a 10 per cent increase in the gap at a post-budget press conference in the capital on Monday. It said the proposed budget for the fiscal year 2022-23 focuses on inflation, agriculture, health, human resources, employment, and education, among other things, and is the embodiment of a far-reaching plan for the country’s total economic development.
However, the corporation urged that the stock exchange consider several ideas in the proposed budget to move the stock market forward. To enhance the country’s bond market, the stock exchange also requested that interest on all types of corporate bonds, including zero-coupon bonds, be tax-free for all investors.
DSE Chairman Md Eunusur Rahman advocated raising the tax-free dividend maximum from Tk50,000 to a minimum of Tk100,000. This is in order to attract long-term investors to the stock market. He further insisted that the dividend source tax be treated as a final tax due. The DSE also demanded that the tax on corporate shareholders’ dividend income be decreased from 20 per cent to 10 per cent, in addition to a reduction in source tax for its members.
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