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The country's premier bourse will seek full waiver of tax at-source on the commission to be realised from the transactions of securities in the small and medium enterprises (SME) platform, planned to be launched soon.
The Dhaka Stock Exchange (DSE) is going to place the proposal, among others, at a pre-budget meeting to be held with the National Board of Revenue (NBR) at its office in the capital today (Tuesday).
To facilitate fund raising by the small cap companies, the Bangladesh Securities and Exchange Commission (BSEC) has already finalised rules for the SME platform.
The platform is almost ready for listing of the small cap companies, the DSE officials said.
Asked, the DSE managing director K A M Majedur Rahman said investors will be encouraged to take part in the SME board, if no tax is imposed on transactions of securities there.
"Besides, the companies which will raise capital through the SME platform will also be benefited," he opined.
For the upcoming fiscal year (FY) 2019-20, the DSE will also seek 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.
The DSE said such tax reduction will help to reduce the cost of transactions, which will ultimately make investment in the capital market more attractive.
To encourage the SME, the premier bourse will also propose reduction of tax at-source to 0.015 per cent from the existing 0.05 per cent on the value of shares, debentures, mutual funds, or securities transacted in the SME platform.
The DSE said the BSEC has already reduced issue management fees, application fees, underwriting fees, initial listing fees, and annual listing fees etc to develop and stabilise the SME platform.
The premier bourse will also seek increasing the investors' tax-free dividend income limit to Tk 0.1 million from the existing Tk 25,000.
The DSE said implementation of the proposals will help to attract the small investors to invest in the capital market that will ultimately ensure its sustainable development.