BMBA wants an opportunity to launder black money in capital market

The Bangladesh Merchant Bankers Association (BMBA) wants the benefit of investing undisclosed money (black cut) in the budget of 2021-22 to make investor confidence and capital market more dynamic. The BMBA made the recommendations in a proposal sent to the finance minister on Sunday (June 8th).

The matter has been confirmed by the president of the organization Chhayedur Rahman. He said, “We have requested the Finance Minister to reconsider four proposals, including keeping the facility of black money investment, making the gap between listed and unlisted companies a minimum of 10 percent.” He said long-term benefits would be reaped if four benefits were given, including the benefit of investing black money in the capital market. Will play a role in making the market dynamic.

BMBA’s proposals to the government are to reduce the tax rate of listed and unlisted companies by 2.5 percent. If the tax gap of 10 per cent is further widened, well-performing companies will be encouraged to be listed on the capital market. Therefore, BMBA has proposed to increase the tax rate gap between listed and unlisted companies.

Source tax: 20 percent tax has been levied on the dividends of companies and 10 percent source tax has been levied at the time of distribution of dividends. I am proposing to reduce this double tax. The repeal of this tax will encourage investors to make long-term investments in the capital market.

Opportunity to invest undisclosed money: I am proposing to keep the opportunity to invest undisclosed money in the capital market like this year. This will increase the transactions in the capital market. This will increase the depth of the market.

It also raised the tax rate to 30 percent for other intermediaries involved in the capital market. But the corporate tax for merchant banks is 37 percent. We are proposing to the government to increase the corporate tax of merchant banks to 30 percent.

Sunbd/NJ