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The proposed national budget for the 2025-26 fiscal year has been welcomed as market-friendly by the Dhaka Stock Exchange (DSE), the DSE Brokers Association of Bangladesh (DBA), and the Centre for Policy Dialogue (CPD), due to several capital market-supportive measures, including a separate corporate tax benefit for listed companies.
At a post-budget press conference on Tuesday, CPD Executive Director Fahmida Khatun said the proposed budget offers separate tax facilities for companies listed on the capital market.
According to the proposal, companies that are listed and comply with transaction-related conditions will be subject to a reduced corporate tax rate of 20 per cent, while non-listed companies will continue to be taxed at 27.5 per cent.
CPD views the increased tax differential positively and believes it will encourage foreign companies to become listed on the country's capital market.
In a press release issued by the DSE, Chairman Mominul Islam expressed gratitude to Economic Adviser Dr Salehuddin Ahmed for presenting what he described as a capital market-friendly budget.
Mominul Islam said the widening of the corporate tax gap between listed and non-listed companies, the reduction in corporate tax for merchant banks, and the cut in the tax deducted at source (TDS) on share transactions would positively impact the market.
He also expressed the hope that in future budget proposals, the government would take steps to offload shares of multinational companies in which it holds stakes, list profitable state-owned enterprises on the capital market, and offer incentives to large local private companies to encourage them to go public-moves that could help revive the country's capital market.
In a separate press release, the DBA also expressed satisfaction with the budget.
DBA President Saiful Islam said the TDS on securities transactions by brokerage firms has been reduced from 0.05 per cent to 0.03 per cent.
Besides, the tax differential between listed and non-listed companies has been proposed to be increased from 5 per cent to 7.5 per cent, and the corporate tax rate for merchant banks has been reduced by 10 percentage points to 27.5 per cent.
"These proposals, if implemented, will play a significant role in the development and advancement of the capital market. They will also offer business advantages to all stakeholders, including domestic and foreign investors, issuer companies, stockbrokers, and merchant banks," said Saiful.
The DBA also thanked the relevant authorities for what it described as the government's clear understanding, goodwill, and effective steps concerning the capital market.