The proposed budget for FY21 is business-friendly and is in favour of general stock investors, according to the country's prime bourse the Dhaka Stock Exchange (DSE).

The DSE made the observation in a statement on the proposed budget on Friday.

Finance Minister AHM Mustafa Kamal on Thursday tabled a national budget of Tk568,000 crore for the 2020-21 fiscal year, with deficit financing of Tk190,000 crore - equivalent to 6% of the coming fiscal year’s projected GDP.

The minister proposed several provisions that would allow people to whiten black money without any question. People will also be able to make disclosure of undisclosed cash, bank deposits, savings certificates, shares, bonds or any other securities on paying taxes at a rate of 10%.

The DSE board welcomed the facility to whiten black money in the stock market for FY21.

The government proposed withdrawing upfront source tax on bond transactions in the secondary market, instead proposing tax deduction at source at the time of payment of interest and discount on bonds.

The country's prime bourse also said these measures will increase transactions of bonds in the capital market and facilitate the flourishing of a strong bond market in the country, while also reducing dependence on banks for industrialization.

The budget has provided a set of incentives for the country's stock market. Through this, the receipts have been adjusted with the expectations of the stock investors, said DSE.

sunbd/sks