Different financial institutions have urged the National Board of Revenue (NBR) to reduce tax burden including corporate tax to facilitate their business in the upcoming budget for the fiscal 2015-16.
Leaders and representatives from Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Bangladesh Merchant Bank Association (BMBA), Bangladesh Leasing and Finance Companies Association, Bangladesh Insurance Association (BIA) and SME foundation came up with the demand at a pre-budget meeting held at the NBR headquarters in the city yesterday.
NBR Chairman Nojibur Rahman presided over the meeting.
Representatives from DSE and CSE demanded for tax exemption facilities for five years, instead of the existing partial exemption at gradually declining rates, as both the bourses are incurring operating loss since demutualisation in the year 2013.
“DSE undertook huge initiatives for infrastructure development after its demutualisation,” said DSE Chairman Siddiqur Rahman Miah.
He also observed: “Tax holiday is needed to keep running the reform activities.”
The DSE representatives also demanded to re-fix the advance income tax at 0.015% from existing 0.05% to reduce transaction cost, considering the current market situation.
BMBA demanded to reduce corporate tax at 15% from the existing 37.5% as the asset management companies pay tax at 15%.
“The tax rate for merchant banks should be 15% as they are the same type business organisation like asset management companies,” said Akter H Sannamat, vice president of BMBA.
He also demanded tax exemption from interest suspense accounts and on interest waiver given to negative equity accountholders.
Leaders from leasing and finance companies urged the NBR to allow bank, insurance and financial institutions to get tax exemption on any income derived from zero coupon bonds.
Currently individual investors, other than the bank, insurance and financial institutions are exempted from payment of tax on income derived from zero coupon bond.
Tax exemption facility for income from zero coupon bonds will help to popular the bond market and will be the source of funding, they explained.