Retain undisclosed money expense scope in stock markets
Three associations operating in the financial industry urged the earnings authority to provide tax benefit and plan support in the next fiscal year.
The Bangladesh Association of Banks (BAB), the Bangladesh Insurance Association (BIA), and the Bangladesh Merchant Bankers Association (BMBA) located the requirements at a pre-budget debate organised by the National Board of Revenue (NBR) at its office.
The BMBA urged the NBR to extend the provision of investing undisclosed income in the stock market for another year.
The Dhaka STOCK MARKET (DSE) also positioned its recommendations.
The DSE said the deadline for the investment of undisclosed profit the capital marketplace on payment of 10 % tax would expire on June 30.
"This special tax treatment facility could be extended up to June 30, 2022," it explained, urging the NBR to slice the rate to 5 %.
With respect to the BAB, Parvez Tamal, chairman of NRBC Lender, said the charge of corporate tax for banks was very high, although the banking industry played an integral role in the monetary development of the united states.
The BMBA demanded a cut in corporate tax for listed companies to 20 % from 25 % to encourage more organizations to go public.
The association said the existing gap of 7.5 percentage issues in the tax rate between posted and non-listed companies will not present enough incentive to firms listed with the stock exchanges.
Simply 325 companies are listed at the stock market, although the number of registered companies is more than 150,000 in Bangladesh, in line with the BMBA proposal presented simply by BMBA President Md Sayadur Rahman.
The BMBA also wanted a decrease in the tax rate for merchant banking institutions to 25 % from 37.5 %.
The DSE said companies to be listed on the SME board of exchanges could be offered concessional tax rate for an interval of five years from the time of listing.
"This type of companies might not exactly be motivated to be listed due to huge disclosure requirements. In addition, tax collection from these businesses isn't significant."
"If such companies receive concessional tax rate, they will be encouraged to go public, and over time, the tax collection of government increase."
