Bangladesh
5 years ago

CSE for reduction of corporate tax for listed companies

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The Chittagong Stock Exchange (CSE) has made nine-point budgetary proposal including the reduction of corporate tax for listed companies.

The port city bourse made their proposals on Tuesday at a pre-budget discussion meeting held with the National Board of Revenue (NBR).

A delegation comprising CSE managing director M Shaifur Rahman Mazumdar, general manager Ghulam Faruque, among others, attended the meeting.

The CSE has proposed to reduce the corporate tax to 20 per cent from the existing 25 per cent for the listed companies.

In this regard, the CSE said the companies having good fundamentals will be encouraged to go public if the corporate tax is reduced.

Another proposal of giving tax waiver to newly listed companies for three years was also made by the port city bourse.

"The share supply will be increased in the capital market if the proposal is considered," the CSE said.

Both the stock exchanges have completed the preparation of launching the SME board to facilitate the capital raising by the small cap companies.

The CSE has proposed the full waiver of corporate tax for first three years of listing with the SME board.

It has proposed 10 per cent corporate tax after three years of listing with the SME board.

"The realisation of direct and indirect will be increased if the proposal is considered," the CSE said.

The port city bourse has proposed the reduction of tax at-source to 0.015 per cent from the existing 0.05 per cent on commission, realised by the stock brokers against transaction of shares, debentures, mutual funds, or securities.

It has made another proposal of waiving the tax charged on transaction of all kinds of bonds for developing a strong bond market.

To avoid multi-layer taxation, the port city bourse has sought the waiver of tax from the dividend income derived from another listed company.

The CSE has also proposed for increasing the investors' tax-free dividend income limit to Tk 0.1 million from the existing Tk 25,000.

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