Stamp duty on venture capital registration cut

Staff Correspondent | Published: 00:00, Nov 08,2019

 
 

Internal Resources Division of the finance ministry has cut the stamp duty on registration of trust deed of venture capital to 0.1 per cent from previous 2 per cent to encourage alternative investment fund in the country.

The IRD on Tuesday issued a statutory regulatory order (SRO) reducing the duty.

It also set the maximum stamp duty at Tk 10 lakh and the minimum duty at Tk 5,000 on the total value of deed.

Venture capital trust approved by the Bangladesh Securities and Exchange Commission will get the benefit, according to the SRO signed by IRD senior secretary and National Board of Revenue chairman Md Mosharraf Hossain Bhuiyan.

The government is encouraging venture capital as an alternative investment fund, to finance technology-based start-up entrepreneurs in the country.

But, fund managers were reluctant to get their funds registered with the BSEC due to higher rate of stamp duty which increased the cost of issuance of the funds.

They had for long been demanding reduction of the duty to make the cost of issuance of the funds affordable.

A government committee on capital market  development had also recommended that the IRD cut the stamp duty to reduce the cost of issuance of bond and other financial products.

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