CSE places budget proposals to NBR

Chittagong Stock Exchange (CSE) has made a set of proposals including imposition of an additional 10 per cent penal tax on tax-free incomes of the companies enjoying tax holiday facilities but not complying with the provision for investing in capital market for next budget.
The CSE Managing Director Syed Sajid Husain has said they recently submitted the budget proposal to the National Board of Revenue (NBR) and both the exchanges will sit with the revenue board to discuss the budget proposals soon.
The other CSE budget proposals are: the continuation of tax exemption on exchanges' income, the reduction of tax at source on the transaction exchange members, the introduction single tier tax structure for companies and resident non-resident Bangladeshis and enhancement of the limit on tax free income.
The CSE has also proposed to enhance the tax exemption limit on house rents of individual taxpayers to Tk 30,000 from the existing limit of Tk 20,000 as the house rents are increasing abnormally.
The port city bourse has stressed on imposition of 10 per cent penal tax on tax-free income of the companies enjoying tax holiday facilities for the sake of capital market and the industrialization as well.
As per the existing provisions, the companies enjoying tax holiday are supposed to invest 10 per cent of their income in the capital market.
"Actually, we do not know how many companies are enjoying the tax holiday. As a result, the capital markets are being deprived of getting investment by such companies," the CSE Managing Director told the FE.
He said the revenue board should ensure strong monitoring so that the companies enjoying tax holiday facilities make investment in the capital market.
"We hope industrialisation will be ensured and the capital market will get due supports if our proposal regarding imposition of penal tax on the income of companies enjoying the tax holiday facilities is considered," Mr. Sajid said.
He said the exchanges are enjoying the tax exemption on their own income and they want the continuation of such facility without mentioning the number of years.
Earlier, the CSE sought tax exemption on their income for seven years.
The CSE has also proposed to lower the tax at source on transaction of exchange members at 0.015 per cent from the existing 0.05 per cent.