NBR won't take any decision hurting small investors
Thursday, 8 April 2010
Doulot Akter Mala
The National Board of Revenue (NBR) will not take any decision that might hurt small investors in the share market, said NBR chairman Wednesday.
The revenue board needs complete proposal from Dhaka Stock Exchange (DSE) to take any decision on imposition of tax on capital market, but it will make cautious move to avoid creating panic among the investors, he said.
"We have requested DSE to form a core committee and give a complete budget proposal by May next," he told the FE after a meeting with the DSE leaders at NBR premises.
The government is contemplating imposing a minimum tax on capital gains and making TIN (taxpayers identification number) mandatory for opening BO (Beneficiary Owners') account.
DSE former president Rakibur Rahman strongly opposed any move of the government on imposition of fresh tax on capital market.
In the current fiscal, the government has increased tax at source on share transaction of stock exchange members to 0.25 per cent from 0.15 per cent.
Rahman said turnover of the stock exchange members has declined following the decision.
Stock exchange members have paid Tk 800 million in taxes last year, he added.
"Imposition of taxes will create panic among the share holders. Already, investment in capital market has declined following newspaper reports on fresh taxes," he said.
It is a sensitive market. Drastic fall of the market will put the government in an awkward position, he said.
The National Board of Revenue (NBR) will not take any decision that might hurt small investors in the share market, said NBR chairman Wednesday.
The revenue board needs complete proposal from Dhaka Stock Exchange (DSE) to take any decision on imposition of tax on capital market, but it will make cautious move to avoid creating panic among the investors, he said.
"We have requested DSE to form a core committee and give a complete budget proposal by May next," he told the FE after a meeting with the DSE leaders at NBR premises.
The government is contemplating imposing a minimum tax on capital gains and making TIN (taxpayers identification number) mandatory for opening BO (Beneficiary Owners') account.
DSE former president Rakibur Rahman strongly opposed any move of the government on imposition of fresh tax on capital market.
In the current fiscal, the government has increased tax at source on share transaction of stock exchange members to 0.25 per cent from 0.15 per cent.
Rahman said turnover of the stock exchange members has declined following the decision.
Stock exchange members have paid Tk 800 million in taxes last year, he added.
"Imposition of taxes will create panic among the share holders. Already, investment in capital market has declined following newspaper reports on fresh taxes," he said.
It is a sensitive market. Drastic fall of the market will put the government in an awkward position, he said.