CSE urges govt not to take anti-stock market step
Wednesday, 12 May 2010
FE Report
Chittagong Stock Exchange (CSE) has urged the government not to take any decision that could hinder the growth of the stock market.
“Country's industrialization, investment, employment, revenue earnings all are interrelated to the stock market development". CSE president Fakhor Uddin Ali Ahmed said in a pre-budget talk.
He said that there should have a specific direction in the next budget regarding investing the black money in the capital market.
The budget should also consider deduction of corporate tax and avoidance of double taxation. He also requested not to impose capital gain tax on stock market earning. Emphasizing on the importance of a healthy capital market for a developing country like Bangladesh he said,
"There is no alternative to increasing the supply of good share in the market". The govt. should not take any decision in the upcoming budget that will hinder growth of our emerging capital market". He added. On the issue of whitening the black money he said, "We always believe that hidden income should be brought in to the main flow of economy. This will accelerate the economic growth and people will enjoy the benefit of it".
He said at present corporate tax for banks and financial institutions is 42.50% which is higher than other listed companies and I suggest reducing the rate at 40%.
The banks make high profit each year. So if the rate is reduced there will be no chance of revenue cut for the govt. and this institutions' dividend pay out power will increase.
In a question to submitting TIN number for opening BO account he said "In an emerging market like Bangladesh submission of TIN number for BO account opening should not be made mandatory because this will have a negative impact on our market as we have not reached in a substantial level yet".
Chittagong Stock Exchange (CSE) has urged the government not to take any decision that could hinder the growth of the stock market.
“Country's industrialization, investment, employment, revenue earnings all are interrelated to the stock market development". CSE president Fakhor Uddin Ali Ahmed said in a pre-budget talk.
He said that there should have a specific direction in the next budget regarding investing the black money in the capital market.
The budget should also consider deduction of corporate tax and avoidance of double taxation. He also requested not to impose capital gain tax on stock market earning. Emphasizing on the importance of a healthy capital market for a developing country like Bangladesh he said,
"There is no alternative to increasing the supply of good share in the market". The govt. should not take any decision in the upcoming budget that will hinder growth of our emerging capital market". He added. On the issue of whitening the black money he said, "We always believe that hidden income should be brought in to the main flow of economy. This will accelerate the economic growth and people will enjoy the benefit of it".
He said at present corporate tax for banks and financial institutions is 42.50% which is higher than other listed companies and I suggest reducing the rate at 40%.
The banks make high profit each year. So if the rate is reduced there will be no chance of revenue cut for the govt. and this institutions' dividend pay out power will increase.
In a question to submitting TIN number for opening BO account he said "In an emerging market like Bangladesh submission of TIN number for BO account opening should not be made mandatory because this will have a negative impact on our market as we have not reached in a substantial level yet".