DSE for allowing temporary tax-exempted investment
FE Report | Tuesday, 10 March 2009
The Dhaka Stock Exchange (DSE) Monday urged the government to allow tax-exempted investment of legally earned but undisclosed money in the capital market for one year.
"Such opportunity will help make the country's capital market more vibrant," DSE president Rakibur Rahman told reporters after the meeting with the representatives of the merchant banks at its auditorium.
"Unless given the chance to legalise undisclosed legally earned money by way of investment in the market, such money will not surface in the mainstream of the country's economy,' he said adding that rather there would remain a scope to use the money in other illegal ways.
He said the national board of revenue (NBR) could realise taxes from such undisclosed money invested in stocks from the second or third year.
The DSE also demanded withdrawal of double taxation policy and increase tax-free investment ceiling from the existing Tk 0.3 million to Tk 1.0 million.
At present, the listed companies cut 10 per cent in advance from dividends given to its shareholders and deposit the sum in the government exchequer as tax.
On the other hand, the shareholders pay tax once again, if their income crosses the limit of tax-free investment.
"This system is unjust and irrational and a stumbling block to the growth of the stock market. So we want an end to it," Rakibur said adding the double taxation policy also discourages the investors to invest in the market.
"Such opportunity will help make the country's capital market more vibrant," DSE president Rakibur Rahman told reporters after the meeting with the representatives of the merchant banks at its auditorium.
"Unless given the chance to legalise undisclosed legally earned money by way of investment in the market, such money will not surface in the mainstream of the country's economy,' he said adding that rather there would remain a scope to use the money in other illegal ways.
He said the national board of revenue (NBR) could realise taxes from such undisclosed money invested in stocks from the second or third year.
The DSE also demanded withdrawal of double taxation policy and increase tax-free investment ceiling from the existing Tk 0.3 million to Tk 1.0 million.
At present, the listed companies cut 10 per cent in advance from dividends given to its shareholders and deposit the sum in the government exchequer as tax.
On the other hand, the shareholders pay tax once again, if their income crosses the limit of tax-free investment.
"This system is unjust and irrational and a stumbling block to the growth of the stock market. So we want an end to it," Rakibur said adding the double taxation policy also discourages the investors to invest in the market.