Tax benefits for stock mkt investors restored

---

FE Report The National Board of Revenue (NBR) issued Monday three separate Statutory Regulatory Orders (SROs), restoring tax benefits for investors in stock market. From now on, NBR will deduct 0.05 per cent tax at source from stock exchange members (brokers) on transaction value of shares, debentures, mutual funds, bonds and securities, as was the practice before. Tax rate for brokerage houses was increased to 0.10 per cent in the budget for 2011-12 through Finance Bill. The revenue board also re-introduced tax rebate facilities on investment in shares, stocks, debentures, securities or mutual funds. Income of the issuers from mutual funds has also been exempted from tax through the SRO. Re-introduction of tax rebate on investment and tax benefit on mutual fund will be made effective retrospectively from July, 2011. Tax officials said the deduction of tax at source on brokerage house commission will come into effect from Monday. The taxmen can not adjust the tax that had already been deducted from the commission of brokerage houses, they said. Officials said the NBR got approval of the PM Sunday evening on its proposals for offering tax benefit for the investors in the share market. The SROs, signed by Syed Md Aminul Karim, additional secretary and tax policy member, is likely to impact the market positively, according to sources. The President of Dhaka Stock Exchange (DSE) could not be reached over phone for getting his comments. Meanwhile, NBR sources informed this correspondent that no amount of undisclosed money was invested in the stock market, availing the facility given under the tax measures for fiscal 2011-12 for disclosure of such money by paying a tax of only 10 per cent of the disclosed amount. However, the deadline for such disclosure for such undisclosed or black money will expire on June 30, 2012.