Gain tax on corporates to hurt capital market

---

Our Correspondent
CHITTAGONG, June 11: CSE President Fakhor Uddin Ali Ahmed in his budget reaction appreciated performance of the growth in remittance which is undoubtedly a remarkable achievement for us while the global remittance flow shrank.
He said that the global remittance flow in 2009 decreased by 5.3 per cent, whereas, with an increase of 19.4 per cent, the remittance flow in Bangladesh reached US$ 10.7 billion in 2010. The remittance flow of first 11 months with an increase of 14.9 per cent stood at US$ 10.1 billion in FY 2009-10.
Fakhor Uddin said, as per the budget proposal, all corporate tax payers will be required to pay 10 per cent tax on income from transaction in listed securities, while sponsors, partners or directors of the listed companies will be required to pay 5 per cent tax on the said income. Such income will remain tax-free for the individuals.
He, however, said, "Imposing tax on corporate bodies and sponsors etc will go against the sustainable development of the capital market. It may also discourage corporate investments in the capital market from home and abroad," and urged the government to review the proposal.
Regarding tax on share premium he said the government has proposed 3.00 per cent tax the premium received from sale of shares issued at premium.