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Dhaka Stock Exchange (DSE) has welcomed the proposed budget, terming it 'business-friendly and capital market development-oriented'.
Finance Minister AHM Mustafa Kamal placed a record Tk 6.03 trillion national budget for the Fiscal Year (FY) 2021-2022 in parliament on Thursday.
The country's main bourse has expressed its gratitude to Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for announcing several positive initiatives in the budget, which reflects the general investors' expectations, according to a DSE statement issued on Thursday night.
The finance minister has proposed slashing the corporate tax rate for the listed firms by 2.5 percentage points to 22.5 per cent for the Fiscal Year (FY) 2021-2022. The DSE thinks the tax rate cut will enhance the listed firms' profit growth and encourage non-listed well-performing companies to go public.
The prime bourse also appreciated the proposed measures aiming to revitalise the capital market as well as strengthen the bond market for long-term financing.
"The government is implementing various reform measures to make the capital market dynamic and vibrant. A few more initiatives will be taken soon to make the stock exchange a profitable and keep pace with the times," said the finance minister in his budget speech.
Some of them include introduction of government treasury bonds in the capital market, introduction of various instruments of the modern capital market such as Sukuk, Derivatives, Options, introduction of OTC Bulletin Board, introduction of ETF, listing of open-end mutual funds, etc, the minister said.
The finance minister also proposed waiving 4.0 per cent gain tax for FY 2021-22 with a view to making Sukuk or Islamic bond popular and creating a strong bond market.