CSE demands withdrawal of conditions for investing black money in stock market
Sunbd Desk || Published: 2020-06-18 11:18:14 || Updated: 2020-06-18 11:18:14
It has also demanded a 20 percent tax rate be applied to listed companies
The Chittagong Stock Exchange (CSE) has demanded the three-year lock-in condition for investing undisclosed or black money in the stock market – in the proposed budget for the 2020-21 fiscal year – be removed.
Additionally, it has demanded a 20 percent tax rate be applied to listed companies.
CSE chairman Asif Ibrahim made the demands at an online press conference on Wednesday as part of the exchange’s post-budget reaction.
“The tax rate gap between listed and unlisted companies was 10 percent,” he said.
However, the tax rate gap for companies listed in the budget has been reduced by 2.50 percent to 7.50 percent, he said.
As he believes good companies will be discouraged from entering the stock market, the CSE chairman proposed the tax rate of listed companies be reduced from 25 percent to 20 percent.
The CSE chairman has demanded a five-year tax exemption for the CSE to help attract strategic investors. He also demanded that broker houses reduce the source tax on share transactions.
“If the income of newly-listed companies is kept tax-free for three years, the non-listed companies will be encouraged for listing. Consequently, the supply of quality stocks on the stock market will increase, which will increase transactions and stabilise the market,” he said.
To create investment interest among institutional investors, Asif Ibrahim said, “The tax rate on capital gains should be reduced to 7.50 percent from 10 percent.”
Further, he expects that their statements should be reconsidered and included before the finalisation of the proposed budget.
Bangladesh Securities and Exchange Commission (BSEC) Commissioner Dr Mizanur Rahman was the chief guest at the online press conference.
In his speech, he said, “The floor price instruction was given due to a special situation.”
“However, like everyone else, we want free and open transactions on the stock market. And, I hope the investors will get that opportunity in a short time as the commission is committed to protecting the investor’s safe investment interests,” said Dr Mizanur.
On Tuesday, the Board of Directors of the Dhaka Stock Exchange (DSE), in a discussion with the BSEC, demanded that the undisclosed funds invested in the stock market be completely lock-in free.
It also demanded that the tax rate be five to eight percent, and requested the commission to take steps to implement the demands.
CSE Director Sohel Mahmud Shakur, Md Liaquat Hossain Chowdhury, Barrister Anita Gazi Islam, Major (Retd) Emdadul Islam and Managing Director Mamun-ur-Rashid, among others, participated in the online press conference.
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