Merchant bankers seek corporate tax cut

The country's merchant bankers on Tuesday demanded reduction of corporate tax to 35 per cent from existing 37.50 per cent to help small investors in the stock market. “We appreciate overall reduction of corporate tax to 35 per cent. But the merchant bankers, which also operate as company, are kept out of such tax reduction benefit,” Tanjil Chowdhury, president of Bangladesh Merchant Bankers Association (BMBA), said at a press conference at Hotel Purbani in the city. The BMBA also placed two more demands -- providing stimulus package for small investors in the stock market, and treating provisioning and write-off loans as tax deductible. Tanjil Chowdhury said the merchant bankers are non-listed companies. So, they should get the benefit of the corporate tax reduction announced in the proposed budget for fiscal 2014-15. He said the merchant bankers have been passing through serious financial crisis because of share market debacle. Many of the merchant banks will have to show huge losses in the income statements, according to a news agency.