Sector wants stamp duty on venture capital fund scrapped

Staff Correspondent | Published: 22:33, Aug 24,2017

 
 

The authorities concerned should take proper measures for withdrawal of a 2 per cent stamp duty applicable for the trust deeds of firms.
Venture Capital sector made the call at a roundtable discussion on the opportunities and challenges of the sector.
State minister for finance and planning MA Mannan was the chief guest at the discussion jointly organised by Venture Capital and Private Equity Association of Bangladesh and Economic Reporters Forum held at Janata Tower in the city.
VCPEAB president Shameem Ahsan presided over the discussion where National Board of Revenue member Parvez Iqbal, Bangladesh Bank director Jamaluddin Ahmed, Bangladesh Securities and Exchange Commission commissioner Swapan Kumar Bala, Bangladesh Bank chief economist Faisal Ahmed and ERF president Saif Islam Dilal, among others, were present.
VCPEAB general secretary Shawkat Hossain in a presentation on ‘Venture Capital : Opportunities and Challenges’ said that all the venture capital funds should be exempted from paying the stamp duty as it has been waived for the mutual fund considering the nature of its function.
Besides, he also called on the government to give tax holiday to the venture capital firms like the facility is given to the asset management companies and such support will help the newly emerging sector to extend its contribution to the economy.
Speaking about the concept of stamp duty, Swapan Kumar Bala said that it has to be stamped on something, but now everything is on electronic format and there is no scope of stamping.
Considering the fact, stamp duty should be replaced by other fees or charges, Bala said.
Speaking on the tax holiday and waiver of stamp duty, Parvez Iqbal said that revenue board will consider the issues despite having limitations.
Jamaluddin Ahmed said the country’s economy has came to the present level with bank dependency, but it would not be able to go further without the help of other financing sources like venture capital.
Stressing on the importance of trust, Faisal Ahmed said that when there will be trust, fund will come automatically.
He also called on the academicians and policy makers to work on trust building.
Expecting venture capital fund’s success in building economy, MA Mannan, however, said, ‘We do not want to see venture capital as adventure capital.’
Mannan also hoped that the revenue board would take supportive measures for the sector.

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