NBR Reduces Capital Gains Tax to 15%

The Bangladesh Securities and Exchange Commission (BSEC) has frozen 117 beneficiary owner (BO) accounts allegedly linked to Beximco Ltd’s owners following a request from the Bangladesh Financial Intelligence Unit (BFIU). On November 14, the BSEC instructed the Chittagong Stock Exchange to gather KYC forms and portfolio statements of these accounts within three days.

The Bangladesh Securities and Exchange Commission (BSEC) has proposed a new tax incentive plan to encourage companies to offer more shares through Initial Public Offerings (IPOs). Under the plan, firms that offload at least 30% of their shares would receive a five-year full corporate tax exemption.

Bangladesh is losing $355 million in tax annually due to corporate profit shifting and tax abuses by wealthy individuals, according to the State of Tax Justice 2024 report published on November 19. Of the total, $335.9 million is lost through profit shifting by multinational corporations, which moved $1.3 billion out of the country—equivalent to 0.1% of Bangladesh's $460 billion economy.

The equity market in Bangladesh has seen a surge in foreign investment since the political transition in August 2024. Foreign portfolio transactions on the Dhaka Stock Exchange rose to Tk 13.91 billion in July-September 2024, doubling the figure from the same period last year. Net portfolio investment by foreign investors also soared to $49 million in July-August FY25, compared to $3 million in the previous year.

The Bangladesh Securities and Exchange Commission (BSEC) has suspended the renewal of PFI Securities’ stock dealer and stockbroker registration due to a Tk28.18 crore deficit in its Consolidated Customer Account (CCA). Despite warnings, the brokerage failed to resolve the long-standing issue, confirmed BSEC spokesperson Mohammad Rezaul Karim.

The Large Taxpayers Unit (LTU) recorded a 12.14% rise in revenue collection during July-September of FY2024-25 compared to the same period in FY24, reaching Tk 63.01 billion. This growth contrasts with a 6.07% decline in overall tax collection by the National Board of Revenue (NBR). Strong monitoring and proactive measures by the LTU, such as one-on-one meetings with 100 corporate taxpayers, ensured compliance.