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The stock market anticipates a major boost as the government allowed untaxed money to invest in the capital market.
People who will avail the facility to invest in securities such as stocks, mutual funds and bonds will have to pay only 10 per cent tax within 30 days of their investments without any penalty.
Finance Minister AHM Mustafa Kamal announced this while unveiling the national budget for the FY 2020-21 at the parliament on Thursday.
The ongoing crisis caused by the coronavirus outbreak and the ensuing changed economic circumstances demand that the mainstream economy of the country be brought back to track and the people be given the opportunity to resume their economic activities, the finance minister said in his budget speech on Thursday.
With a view to providing impetus to the stock market, a major hub of economic activity of the country, individual taxpayers can invest money in the capital market between 1st July 2020 and 30th June 2021 and show it in their tax returns on paying tax at a rate of 10 per cent on the value of the investment subject to satisfying certain conditions including a lock-in period of three years, and no other authority including the income tax authority will raise any question in this regard, he said.
“When comes into force, the provisions will increase the flow of money into the mainstream economy, generate employment and enhance collection of tax revenue,” said the finance minister in his budget speech.
The capital market will get new life if the decision is implemented, said a DSE director.
He noted that stock market investors who have been affected badly by the impacts of the coronavirus pandemic will also be benefited.
Since the independence of Bangladesh, most of the governments had provided the opportunity to legalise the undisclosed money in some selective areas, but those initiatives mostly failed to get any serious attention.