DSE for slashing corporate tax by 5pc in budget
Asaduzzaman Pallab | Monday, 18 April 2011
Asaduzzaman Pallab
Dhaka Stock Exchange (DSE), the premium bourses of the country, will propose the government to slash corporate tax by 5.00 per cent for listed financial institutions in the next national budget. The current corporate tax for banks, insurances and NBFI's (non-banking financial institutions) is 42.5 per cent. Sources in the DSE said the demand will be made in the budget proposal of DSE for the fiscal year 2011-2012. The prime bourse is set to submit its budget proposal to the National Board of Revenue (NBR) very soon. Financial sector is the major contributor to market capitalisation of the DSE. DSE will also make proposal for tax exemption for any listed mutual fund in the capital market. At present, the mutual funds sponsored by the state-owned Investment Corporation of Bangladesh (ICB) enjoy tax exemption facilities. In its budget proposal, the DSE will also make demand for tax exemption on premium income over face value in case of rights shares or in any initial public offering (IPO) process of a company. Currently, 3.0 per cent income tax is imposed on the premium income of any companies. The DSE has also demanded of the authorities concerned to consider income tax on dividend income as the final tax. Sources said the DSE will also propose to transfer the responsibility of collecting income tax in case of selling off sponsors' shares to the Central Depository Bangladesh Limited (CDBL). At present, DSE collects income tax from the sponsor shareholders over selling of shares. The DSE is also going to propose withdrawal of tax in case of tax re-assessment of any tax file. A person requires giving 5.0 per cent tax for re-assessment. The DSE will also seek tax exemption in case of filing case with the High Court Division. It needs 10 per cent tax for filing of any case with the High Court Division. When contacted, DSE Director Ahmed Rashid Lali said the authorities of DSE will hold discussion with NBR officials soon over the budget proposal. In the meeting, the DSE will place its argument in the form of budget proposal, he added.
Dhaka Stock Exchange (DSE), the premium bourses of the country, will propose the government to slash corporate tax by 5.00 per cent for listed financial institutions in the next national budget. The current corporate tax for banks, insurances and NBFI's (non-banking financial institutions) is 42.5 per cent. Sources in the DSE said the demand will be made in the budget proposal of DSE for the fiscal year 2011-2012. The prime bourse is set to submit its budget proposal to the National Board of Revenue (NBR) very soon. Financial sector is the major contributor to market capitalisation of the DSE. DSE will also make proposal for tax exemption for any listed mutual fund in the capital market. At present, the mutual funds sponsored by the state-owned Investment Corporation of Bangladesh (ICB) enjoy tax exemption facilities. In its budget proposal, the DSE will also make demand for tax exemption on premium income over face value in case of rights shares or in any initial public offering (IPO) process of a company. Currently, 3.0 per cent income tax is imposed on the premium income of any companies. The DSE has also demanded of the authorities concerned to consider income tax on dividend income as the final tax. Sources said the DSE will also propose to transfer the responsibility of collecting income tax in case of selling off sponsors' shares to the Central Depository Bangladesh Limited (CDBL). At present, DSE collects income tax from the sponsor shareholders over selling of shares. The DSE is also going to propose withdrawal of tax in case of tax re-assessment of any tax file. A person requires giving 5.0 per cent tax for re-assessment. The DSE will also seek tax exemption in case of filing case with the High Court Division. It needs 10 per cent tax for filing of any case with the High Court Division. When contacted, DSE Director Ahmed Rashid Lali said the authorities of DSE will hold discussion with NBR officials soon over the budget proposal. In the meeting, the DSE will place its argument in the form of budget proposal, he added.