Internal Resources Division of the finance ministry has reduced the stamp duty on registration of trust deed of venture capital to 0.1 per cent from previous 2 percent to encourage alternative investment fund and facilitate startup ecosystems in the country.
Ministry of finance (MoF) has slashed the stamp duty through an SRO (statutory regulatory order) issued on November 5. According to the SRO, the maximum of stamp duty for an alternative investment fund will be Tk 1.0 million, whereas the lowest amount will be Tk 5,000.
The government has reduced the stamp duty on registration following demand of the fund managers. The stamp duty is imposed while an alternative investment fund is registered as a trust. The fund managers have to pay stamp duty before getting funds in hand which creates huge obstacles in mobilising funds.
The industry experts hailed the the government’s initiative taken to bolster the startup ecosystems saying the reduction on registration of stamp duty of trust agreement will be a great support the development of the sector.
Earlier, the Venture Capital & Private Equity Association of Bangladesh (VCPEAB) made several proposals including the cut of stamp duty to help drive the startup ecosystem.
The Bangladesh Securities and Exchange Commission (BSEC) formulated the Alternative Investment Rules in 2015, paving the way for mobilising funds for startups.
