DSE calls for avoidance of double taxation
Tuesday, 23 September 2008
FE Report
Dhaka Stock Exchange (DSE) has stressed the need for avoiding double taxation of listed companies to encourage non-listed companies to list on the exchange.
"The non listed companies will feel discouraged to go public with the existence of double taxation system," a DSE presentation said Monday in a meeting between the DSE and the National Board of Revenue (NBR).
The meeting took place in the DSE board room when NBR Chairman Abdul Mazid visited the bourse.
DSE senior vice president Saiful Islam and DSE directors were present.
The DSE presentation placed by its CEO Salahuddin Ahmed Khan said 28 per cent of the total income tax mobilised by the government in last year came from 271 listed companies.
There are 73,082 companies registered with the Registrar of Joint Stock Companies and Firms, but only 271 are listed with the stock market.
"So the revenue could be largely enhanced with listing of more and more companies in the stock market, but those companies should enjoy tax facility," the DSE CEO said.
DSE also demanded that the existing tax on the turnover should be reduced to 0.1 per cent from 0.15 per cent.
DSE Members paid a total of Tk 163.2 million as tax in 2007-08 which will hopefully rise to Tk 200 million this year.
ICC Bangladesh President and also a nominated director of DSE, Mahbubur Rahman said genuine tax-payers remained discouraged for years in the Bangladesh tax culture though lot of discussions took place on revenue-related issues.
He also highlighted the extension of deadline for submissions of income tax returns.
The DSE senior vice president Saiful Islam said floatation of shares either in private placement or direct listing carry same importance in the economy.
"Pre-IPO shares have to remain under lock-in for a minimum one year while share floatation to public has so such provision," Mr Saiful said.
Former DSE senior vice president Ahmad Rashid Laly stressed the need for institutionalization of tax administration. He said country's economy could be benefitted through greater inflow of money in the stock market.
The NBR Chairman assured the DSE to consider the demands placed by the prime bourse of the country. He also asked to form a committee by the DSE members to follow-up the stock market-related issues with the NBR.
DSE vice president Sharif Ataur Rahman, Directors Abdullah Bokhari, Md Rakibur Rahman, Shahed Abdul Khaleque, Md Hanif Bhuiyan, Lailun Nahar Ekram and Masudul Haq took part in the discussion.
Dhaka Stock Exchange (DSE) has stressed the need for avoiding double taxation of listed companies to encourage non-listed companies to list on the exchange.
"The non listed companies will feel discouraged to go public with the existence of double taxation system," a DSE presentation said Monday in a meeting between the DSE and the National Board of Revenue (NBR).
The meeting took place in the DSE board room when NBR Chairman Abdul Mazid visited the bourse.
DSE senior vice president Saiful Islam and DSE directors were present.
The DSE presentation placed by its CEO Salahuddin Ahmed Khan said 28 per cent of the total income tax mobilised by the government in last year came from 271 listed companies.
There are 73,082 companies registered with the Registrar of Joint Stock Companies and Firms, but only 271 are listed with the stock market.
"So the revenue could be largely enhanced with listing of more and more companies in the stock market, but those companies should enjoy tax facility," the DSE CEO said.
DSE also demanded that the existing tax on the turnover should be reduced to 0.1 per cent from 0.15 per cent.
DSE Members paid a total of Tk 163.2 million as tax in 2007-08 which will hopefully rise to Tk 200 million this year.
ICC Bangladesh President and also a nominated director of DSE, Mahbubur Rahman said genuine tax-payers remained discouraged for years in the Bangladesh tax culture though lot of discussions took place on revenue-related issues.
He also highlighted the extension of deadline for submissions of income tax returns.
The DSE senior vice president Saiful Islam said floatation of shares either in private placement or direct listing carry same importance in the economy.
"Pre-IPO shares have to remain under lock-in for a minimum one year while share floatation to public has so such provision," Mr Saiful said.
Former DSE senior vice president Ahmad Rashid Laly stressed the need for institutionalization of tax administration. He said country's economy could be benefitted through greater inflow of money in the stock market.
The NBR Chairman assured the DSE to consider the demands placed by the prime bourse of the country. He also asked to form a committee by the DSE members to follow-up the stock market-related issues with the NBR.
DSE vice president Sharif Ataur Rahman, Directors Abdullah Bokhari, Md Rakibur Rahman, Shahed Abdul Khaleque, Md Hanif Bhuiyan, Lailun Nahar Ekram and Masudul Haq took part in the discussion.