Undisclosed money investment in stocks may continue in next budgetStaff Correspondent
The National Board of Revenue on Wednesday indicated that the provision of investing undisclosed money in the stock markets by paying 10 per cent tax would continue in the next budget for the fiscal year 2012-13.
‘All incentives given by the government to stabilise the stock market in the current fiscal year will be continued in the next budget,’ NBR chairman Nasiruddin Ahmed said at a pre-budget discussion meeting with the Dhaka Stock Exchange.
Responding to a question whether the scope of legalising undisclosed money by investing in the stocks by paying 10 per cent tax will continue or not, Ahmed told reporters that all the incentives given by the government would remain unchanged in the coming budget.
‘The NBR will ensure everything so that the investors, particularly small investors, will not be hurt in any way, he said.
However, the DSE, in its proposal, did not demand the scope of allowing investment of undisclosed money in the stocks.
During the pre-budget discussion meeting, the DSE placed its budget proposal for 2012-13 fiscal year to the NBR, demanding several tax deduction and rebates including a special income tax incentive for investors.
The DSE demanded that any share market investor with a minimum annual income of Tk 10 lakh and Tk 50,000 investment in the market should get income tax waiver amounting to 50 per cent of the investment in the next budget.
The DSE proposal means, if an investor who has an annual income of Tk 10 lakh and made investment of Tk 50,000 in the current fiscal year, he or she would get a tax waiver of Tk 25,000, explained a DSE official.
The DSE also proposed to waive taxes on dividend income up to Tk 25,000 in the budget.
Unlike last year, the DSE did not demand any provision for legalising undisclosed money by stock investment although the NBR chairman assured that the provision would continue.
In the budget proposal, the DSE also demanded lowering the corporate tax for banks, insurance, and non-bank financial institutions to 37.5 per cent from the existing 42 per cent.
It proposed for charging 32.5 per cent tax for any listed financial institution.
The DSE also proposed 15 per cent corporate tax rebate for the first year after a company gets listed in the Dhaka bourse.
The processing of initial public offering worth more than Tk 10 crore should be made through the DP network or brokerage houses, the DSE in its budget proposal said.
The brokerage tax should be lowered to .015 per cent from existing .05 per cent, the proposal said.
The bourse in its budget proposal also demanded separate tribunal for securities cases and withdrawal of 25 per cent tax collection for moving to the High Court with tax related cases.
DSE president Rakibur Rahman said that if the NBR accepted the proposal, the revenue collection from DSE would increase as the market turnover would be higher substantially.
He demanded the government should force the multinational companies to be enlisted in the market.
‘It can not allow that the MNC will take away all their profit to their home country only by paying a little tax. They should be brought in the capital market,’ he said.
He said that no MNC could do their business in any country without becoming listed in the capital market, but only exception is in Bangladesh.
NBR members Syed Aminul Karim, Md. Ala uddin and DSE vice-president Ahmed Rashid Lali, among others, were present at the meeting.
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