Govt may allow undisclosed money in infrastructure investment bond
Thursday, 10 June 2010
FE Report
The government might keep a provision of investment of undisclosed money in the 'infrastructure investment bond' with payment of 10 per cent tax up to June 30, 2012.
The investment will be allowed in some major infrastructure development sectors to materilise the government's public-private partnership (PPP) move and generate fund for power and energy sector.
Finance Minister AMA Muhith is likely to propose the measure today (Thursday) in his budget speech to encourage investment in infrastructure.
This move will be first-ever initiative of government to allow investment of undisclosed money in public welfare, sources said.
The government has ruled out tax officials' proposal on keeping a scope for investment of undisclosed money in flat and land.
The government has already formed a Bangladesh Infrastructure Finance Fund (BIFF).
Individual and company can buy some specific bonds, to be launched by this fund, with undisclosed money paying 10 per cent tax until 2012.
The government aims to raise Tk 16 billion equity fund in the next fiscal, sources said.
The BIFF will issue bonds and debt instruments to local and foreign investors in a bid to raise a fund for financing projects.
The new offer will help the government expediteformation of the equity fund, sources said.
The opportunity of investment of undisclosed money in industry and capital market will expire on June 30.
The government will not continue with the opportunity as it has received an extremely poor response to the offer.
Until May, a total of 180 people availed of the opportunity paying Tk 74.9 million in tax against disclosed amount of Tk 690 million.
The government might keep a provision of investment of undisclosed money in the 'infrastructure investment bond' with payment of 10 per cent tax up to June 30, 2012.
The investment will be allowed in some major infrastructure development sectors to materilise the government's public-private partnership (PPP) move and generate fund for power and energy sector.
Finance Minister AMA Muhith is likely to propose the measure today (Thursday) in his budget speech to encourage investment in infrastructure.
This move will be first-ever initiative of government to allow investment of undisclosed money in public welfare, sources said.
The government has ruled out tax officials' proposal on keeping a scope for investment of undisclosed money in flat and land.
The government has already formed a Bangladesh Infrastructure Finance Fund (BIFF).
Individual and company can buy some specific bonds, to be launched by this fund, with undisclosed money paying 10 per cent tax until 2012.
The government aims to raise Tk 16 billion equity fund in the next fiscal, sources said.
The BIFF will issue bonds and debt instruments to local and foreign investors in a bid to raise a fund for financing projects.
The new offer will help the government expediteformation of the equity fund, sources said.
The opportunity of investment of undisclosed money in industry and capital market will expire on June 30.
The government will not continue with the opportunity as it has received an extremely poor response to the offer.
Until May, a total of 180 people availed of the opportunity paying Tk 74.9 million in tax against disclosed amount of Tk 690 million.