'Reform stock market to achieve int'l standard'
Tuesday, 13 April 2010
FE Report
Economists at a pre-budget discussion Monday advised the finance minister to impose tax on capital gain of share price and reform the stock market to bring it to international standard.
They also recommended that the minister should give maximum importance to power sector, including sources of primary energy, and the other priority areas such as health, education, revenue collection and ADP implementation.
Finance minister Abul Maal Abdul Muhith said the next budget will keep the priority sectors unchanged with power sector getting the maximum attention.
"The budget will be of Tk 1.3 trillion with the Annual Development Programme (ADP) of Tk 380 billion and there will be clear direction to increase employment opportunity in the industrial sector," he said.
The minister asked all to submit him a two-page tax return schedule to reduce hassles in filling up of the complicated income tax return form.
Mr Muhith further said he had a proposal to impose tax on the capital gain in the share market, but he has not taken any decision yet.
Former Bangladesh Bank governor Muhammed Farashuddin said international media carry news of many small stock exchanges but they hardly show any interest in the Dhaka stocks.
"We need to reform the capital market to get the attention of the international community," he suggested.
He said the government should make payment to any institution through cross-cheque to avoid tax-evading.
He pointed out that there is discrimination between the prices of compressed natural gas (CNG), diesel and octane. "It should be removed," he said.
Centre for Policy Dialogue Executive Director Mostafizur Rahman said the government should impose tax on capital gain.
"Even if it is not imposed in the next budget, there should be a signal that it will be imposed in the following budget," he suggested.
Economists at a pre-budget discussion Monday advised the finance minister to impose tax on capital gain of share price and reform the stock market to bring it to international standard.
They also recommended that the minister should give maximum importance to power sector, including sources of primary energy, and the other priority areas such as health, education, revenue collection and ADP implementation.
Finance minister Abul Maal Abdul Muhith said the next budget will keep the priority sectors unchanged with power sector getting the maximum attention.
"The budget will be of Tk 1.3 trillion with the Annual Development Programme (ADP) of Tk 380 billion and there will be clear direction to increase employment opportunity in the industrial sector," he said.
The minister asked all to submit him a two-page tax return schedule to reduce hassles in filling up of the complicated income tax return form.
Mr Muhith further said he had a proposal to impose tax on the capital gain in the share market, but he has not taken any decision yet.
Former Bangladesh Bank governor Muhammed Farashuddin said international media carry news of many small stock exchanges but they hardly show any interest in the Dhaka stocks.
"We need to reform the capital market to get the attention of the international community," he suggested.
He said the government should make payment to any institution through cross-cheque to avoid tax-evading.
He pointed out that there is discrimination between the prices of compressed natural gas (CNG), diesel and octane. "It should be removed," he said.
Centre for Policy Dialogue Executive Director Mostafizur Rahman said the government should impose tax on capital gain.
"Even if it is not imposed in the next budget, there should be a signal that it will be imposed in the following budget," he suggested.