Ref: Dhaka Stock Exchange (DSE) wants the provision to legalise black money to stay for the companies listed in the share market.
“The opportunity to invest unaccounted income in government treasury bonds should be given to the companies listed in the share market,” DSE president Shakil Rizvi told a post-budget press conference on Saturday.
Finance minister A M A Muhith on Thursday proposed in parliament to keep the provision for another fiscal year to whiten the black money by giving 10 percent tax while investing in government treasury bonds.
He said Tax Identification Number (TIN) and tax on investment in share market will not be mandatory in the fiscal year.
A separate Clearing and Settlement Company will be formed for trading in the share market immediately, the finance minister said.
DSE and Chittagong Stock Exchange (CSE) organised separate press conferences on Saturday to express their views on the budget.
Rizvi and CSE president Fakhor Uddin Ali Ahmed suggested offloading the shares of state-owned companies immediately.
They demanded withdrawal of the proposal to increase tax at source on commissions of stock exchange members.
Muhith proposed increasing tax at source on the commissions of stock exchange members from 0.05 percent to 0.1 percent.
Rizvi said, “Trading will become costlier and the small investors will be harmed if the proposal is passed.”
He expressed satisfaction over the proposals for long-term development of the share market. “The budget could be called a share market-friendly one if the proposals are implemented.”
Ahmed said, “The steps taken can help restore the investors’ confidence in the market.”
He, however, called for resolving the liquidity crisis in the market. “The government can collect money by offloading the shares of state-owned companies to make up the budget deficit.”