DSE seeks full tax exemption from next fiscal year

Dhaka Stock Exchange (DSE) has sought full tax exemption on its income for next three fiscal years (FYs) so that it could continue the ongoing reform activities, officials said.
In a recent letter to the finance minister, the DSE sought the waiver from the next budget, which was being prepared by the finance ministry.
"We want a full tax exemption for three years from the next budget," DSE managing director (MD) K.A.M. Majedur Rahman told the FE.
The bourse as also the Chittagong Stock Exchange (CSE) was enjoying a tax exemption facility, though not full exemption, which the government awarded them for five years since the FY 2014-15.
Sources said the DSE would soon face a capital shortage if the tax is imposed on its income again. On the other hand, ongoing demutualisation activities would be affected, a source concerned said.  
Besides, around 60 per cent shares of the existing shareholders will be sold out to the local and foreign investors soon, he said, adding that the net asset value and the price of the shares would be reduced if the tax is not exempted fully right now.
In November 2013, both the DSE and Chittagong Stock Exchange (CSE) were demutualised, following enactment of the Demutualisation Act, and turned into profit-making entities, sources said.
They said the demutualisation scheme is a five-year government approved continuous process. So, the government should give full tax exemption facility under the scheme to help the bourses continue their ongoing reform activities and build infrastructure investment capacity, they added.
The government earned Tk 2.5 billion in the form of dividend tax and Beneficiary Owner (BO) account charges in FY 2015-16.
Besides, Tk 520 million has been deposited with the government exchequer in FY 2015-16. The DSE made a net profit of Tk 90 million in the FY 2015-16, according to the letter.
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