The Chittagong Stock Exchange (CSE) is urging strategic tax exemptions in the upcoming fiscal year 2024-25 budget to support product diversification and market expansion in Bangladesh’s capital market. In a press conference, the CSE emphasized the need for tax exemptions lasting 2 to 3 years for companies listing on alternative trading boards (ATB) and SME boards, aiming to increase listings and enhance market participation.
The ATB, designed for unlisted companies, currently has minimal listings at the Dhaka Stock Exchange (DSE), while the SME board supports small and medium enterprises with only 20 listed stocks. The CSE also sought tax waivers for hardware and software investments required for introducing equity and commodity derivatives, as well as a five-year tax exemption for the yet-to-be-launched commodity stock exchange. These initiatives are intended to narrow the tax gap between listed and non-listed companies and incentivize robust market participation in Bangladesh’s stock exchanges.