JS adopts Finance Bill today

Doulot Akter Mala | Published: June 28, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The Finance Bill 2014 is set to see some major changes, including continuation of tax exemption on capital gains for individual stock investors, when it is placed in parliament (Jatiya Sangsad) today (Saturday) for adoption, competent sources said. Â
Finance Minister AMA Muhith is expected to place the bill in the House for its endorsement in an amended form to accommodate the changes in the proposed tax measures. Â
Sources said the government backtracked on its move to impose capital-gain tax on individual investors, in order to help revive the country's capital market that has passed through shocks from a scam in 2010.
Among other changes in the proposed measures, opportunity of declaring undisclosed income through purchase of flats, apartments and also through 'voluntary declaration' would remain unchanged to help bring the tainted money in the mainstay of the economy.
The finance minister may also withdraw his budget proposal imposing 5.0 per cent advance income tax (AIT) on import of mobile handset.
Tax-rebate facility for non-listed companies, at a rate of ten per cent, would also continue for the upcoming fiscal year upon declaration of 30 per cent dividends.
In the budget proposal, the finance minister withdrew the tax rebate for the companies not listed on the share market.
Tax on transfer of flats and land would also be rationalised through the amendments to the finance bill.
In the proposed budget placed on June 5, the finance minister had imposed tax on capital gains of individual investors for the first time.Â Â Â
As per the proposal, individual investors have to pay 3 per cent tax on gains from investment in stocks above Tk 1.0 million to Tk 2.0 million. The tax rate was 5.0 per cent for gains above Tk 2.0 million.
After the budget proposal, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) authorities urged the government to rethink the tax measure in view of sluggish trend of the market. They proposed the government keep existing tax-free facility for individual investors in the upcoming fiscal year.
After budget proposals, the DSE benchmark index dipped 3.36 per cent or 153 points in the last 20 trading days, from June 5 to 26.
Competent sources said the government high-ups took the decision not to impose any gain tax on individual investors in the last minute, on Friday, in response to the stock-market stakeholders.
"Individual investors are likely to continue to enjoy the tax-exemptionÂ facility on capital gains in the upcoming fiscal year (FY)," said one source.