Merchant bankers have made a set of proposals including the reduction of corporate tax rate to 15 per cent for listed companies in next national budget.
Bangladesh Merchant Bankers Association (BMBA) made the proposals through a letter sent to the chairman of National Board of Revenue (NBR) on Wednesday.
As per existing rules, the listed companies, other than the banks, insurers, financial institutions, tobacco companies and telecom operators pay corporate tax at a rate of 22.5 per cent.
The BMBA said the reduction of corporate tax to 15 per cent for the listed companies will encourage many more companies to go public and the government's revenue income will also be enhanced.
The BMBA has also made the proposal of setting corporate tax at 25 per cent for the merchant bankers instead of 37.5 per cent to facilitate their operations.
Presently, the stock brokers and asset management companies pay corporate tax at the rate of 30 per cent and 15 per cent respectively.
The association has urged the revenue board to consider their advance income tax (AIT), which is imposed on dividend, as final settlement to avoid double taxation.
The merchant bankers made another proposal of fixing uniform VAT rate for the listed and non-listed companies as the latest ones are availing different facilities without offloading shares.
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