Stock exchanges want tax on listed companies at 15%

Both the country’s bourses, Dhaka and Chittagong stock exchanges, are going to propose a reduction of corporate tax to 15% for publicly listed companies for the next fiscal year 2018-19 to encourage more companies to enlist. Currently, publicly listed companies have to pay a minimum of 25% and maximum of 40% tax based on their business category. Their proposals also include increasing the ceiling of tax-free dividend income to Tk100,000 from the existing Tk25,000. They will make the proposals to the revenue board today for the fiscal budget 2018-19 to be placed at parliament in June. Mostaque Ahmed Sadeque president of DSE Brokers Association (DBA) said: “This will be good for the market and the government should consider that.” DSE also wants a tax exemption of up to Tk100,000 on dividend income for small investors said Abdul Matin Patwary, chief financial officer of the DSE. The other proposals for the up-coming budget are for the NBR to reduce turnover tax to 0.015% from 0.05% to increase turnover. The exchanges also want to buy saving certificate as they are not allowed to buy them in the stock market. The country’s two stock exchanges have sought a three-year tax holiday on sales proceed of shares as well as exemption from capital gain tax on block shares in the fiscal year 2018-19.