Deduction of taxes between 3.0 per cent and 5.0 per cent from gains proposed

The government has proposed to deduct taxes at a rate between 3.0 per cent and 5.0 per cent from the gains realised by individual investors of the capital market.
The proposal of deducting tax from realised gains of the securities traded in the stock exchanges was mentioned in the Finance Bill 2014-15.
According to the Finance Bill for the FY 2014-15, any person, not being a company or firm or a sponsor shareholder or director of a company or a placement holder of a company or a mutual fund, will have to pay tax at the rate of 3.0 per cent of the realised gains if his gains exceed Tk 1.0 million but do not exceed Tk 2.0 million.
And the individual investor will have to pay tax at the rate of 5.0 per cent of the realised gains, where such gains exceed 2.0 million.
"The Principal Officer of a company holding Trading Right Entitlement Certificate (TREC) of any stock exchange dealing in shares or securities listed with such stock exchange shall deduct the tax imposed on the capital gains before closing of a financial year under the section 15 of the Demutualisation Act, 2013," said the Finance Bill15.
The budget for fiscal year 2014-15 also proposed to offer tax exemption facilities for five years in graduated rate for Demutualised Stock Exchanges - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
"I offer tax exemption facilities for 5 years in graduated rate for Demutualised Stock Exchanges with a view to maintaining stability in capital market together with its continual expansion and strengthening," said Mr Muhith in his budget speech.
Mr Muhith also proposed to extend the limit of tax exempted dividend income from Tk 10,000 to Tk 15000.
The finance minister said that the country's capital market suffered a major setback in FY 2010-2011 and the small investors became the worst victims of the situation by losing their investment. The government appointed an inquiry commission and also took up a comprehensive reform programme.
The Bangladesh Securities and Exchange Commission (BSEC) was reorganized which ensured good governance in the capital market by reforming the legal and regulatory framework within 2 years, said the Finance Minister.
"It is at their initiative with support from DSE and CSE that demutualization of ownership and management from trading rights have almost been completed in these two stock exchanges under the Exchanges Demutualisation Act-2013," said Mr Muhith.
As a result of the initiatives taken from time to time the price index and market capitalization of DSE has been quite stable since the beginning of 2013," the finance minister added in his budget speech.