DSE for widening tax gap between listed, non-listed companies
Dhaka Stock Exchange (DSE) has urged the government to widen the gap between the rates of corporate tax paid by listed and non-listed companies.
The premier bourse DSE said the gap between the rates of corporate tax paid by listed and non-listed companies should be at least of 10 per cent.
The DSE's top officials on Monday made the demands at a post-budget press conference held at its office situated in Nikunja of capital Dhaka.
Welcoming the proposed reduction of corporate tax to 20 per cent from 22.25 per cent for the companies that issue shares worth more than 10 per cent of paid-up capital through IPO (initial public offering), the DSE said the tax gap should be at least 10 per cent.
"We are demanding at least 10 per cent gap for the sake of the capital market's sustainable expansion. Well performing companies will be inspired at this to go public," said the DSE chairman Md. Eunusur Rahman in his written speech.
He said the tax-free ceiling of dividend income should be raised to at least Tk 0.1 million from the existing Tk 50,000.
"Besides, we have a demand of reconsidering tax at source charged on dividend as final settlement," said the DSE chairman.
The DSE also demanded exemption of tax from the interest of all corporate bonds like the zero coupon bonds.
"The size of the country's existing bond market is very small. We think, the country's overall economy will be benefitted through time befitting policy supports for the bond market."
Another demand of the premier bourse is the reconsideration of gradual reduction of corporate tax by 10 per cent for at least five years for the companies to be listed with the SME board.
"The DSE introduced the SME board to facilitate long term financing for small cap companies along with improving their corporate governance," said the DSE chairman Mr. Rahman.
According to another demand of the premier bourse, the tax charged on dividend income of corporate tax payers should be reduced to 10 per cent from 20 per cent.
"At the same time, we are urging the government to reconsider 10 per cent tax as final settlement."
The DSE termed 0.05 per cent tax at source charged on transactions of securities as irrational.
"Either the tax at source charged on transactions of securities should be reduced to 0.015 per cent or effective measures should be taken in the order to pay income tax at a regular rate," said the chairman of the premier bourse.
Two DSE directors Md. Siddiqur Rahman and Sharif Anwar Hossain, DSE managing director Tarique Amin Bhuiyan and chief operating officer M. Shaifur Rahman Mazumdar, among others, were present at the post budget press briefing.