Undisclosed Money Investment in Stocks

BSEC requests NBR to withdraw lock-in condition

Staff Correspondent | Published: 23:22, Jun 18,2020


The Bangladesh Securities and Exchange Commission on Thursday requested the National Board of Revenue to withdraw the three-year lock-in condition the government imposed on the undisclosed money investment in the capital market and reduce the corporate tax on the listed companies.

BSEC chairman Shibli Rubayat-Ul-Islam and its commissioners made the requests when they met with NBR chairman Abu Hena Md Rahmatul Muneem at the NBR office in the capital on the day.

Abu Hena assured the commission that the revenue board would try its best to address the issues.

Finance minister AHM Mustafa Kamal on June 11 placed the proposed budget for the financial year 2020-21 before parliament.

The proposed budget reduced the corporate tax on non-listed companies to 32.5 per cent from 35 per cent, but it kept the tax unchanged for the listed companies at 25 per cent.

The BSEC also urged the government to reduce the corporate tax for the listed companies by 2.5 per cent.

The proposed budget also allowed investment of undisclosed money in the capital market subject to a three-year lock-in.

The stock market regulator requested the government to withdraw the provision to increase the fund flow to the market.

The commission also urged the NBR to reduce advance income tax on share trading by brokerage houses to 0.015 per cent from existing 0.05 per cent.

The BSEC requested the NBR to reduce capital gain tax on merchant banks to 5 per cent from current 10 per cent.

Besides, it appealed for increasing tax-free dividend income ceiling to Tk 1.5 lakh from existing Tk 50,000.

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