Bourses strongly oppose tax on capital gain from stocks

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FE Report
Stock exchange leaders have proposed framing of guidelines to bring undisclosed money in the capital market, consider advance tax on dividend as final settlement, not to impose tax on capital gain and to avoid fiscal measures affecting small investors.
They have urged the National Board of Revenue (NBR) to prepare specific guidelines to attract investment of undisclosed money in the capital market, as the opportunity has received a very low response in the first ten months of the current fiscal.
Dhaka Stock Exchange (DSE) President Shakil Rijvi, Chittagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed, Securities and Exchange Commission (SEC) Executive Director ATM Tariquzzaman submitted the proposals in a pre-budget meeting to the revenue board.
NBR Chairman Dr Nasiruddin Ahmed assured the stock exchange leaders that the board would help them attract investment of undisclosed money in capital market availing the exiting opportunity.
The NBR is ready to amend the order, if needed, on offering the opportunity to help investors invest in the market, he said.
"The revenue board will always help stock exchanges to develop capital market, but it has to consider revenue aspects too," he said.
Tax policy member Aminur Rahman said the presence of limited companies in the capital market is not satisfactory although they are enjoying all opportunities to be included in the market.
DSE president Shakil Rijvi proposed the revenue board to avoid double taxation on investors in the capital market.
He also proposed to treat 10 per cent tax at source on dividend income of capital market as final settlement.
The government can impose indirect taxes to raise collections from capital market instead of direct tax on capital gain, he said.
CSE president has proposed to slap Tk 100 maintenance fee against BO accounts to raise revenue collection. There are a total of 2.4 million BO account holders, according to CDBL statistics.
CDBL will collect the fees at the time of renewal of BO accounts, he said.
The stock exchange leaders strongly opposed any move on imposition of tax on capital gain of share market saying that the measure would affect the efforts on wooing foreign investment.
Foreign investors will flock to the neighbouring country as there is no such tax there, they said.