• Monday, Sep 21, 2020
  • Last Update : 09:59 pm

Budget FY19: DSE, CSE disappointed over proposed budget

  • Published at 12:34 am June 8th, 2018
dhaka stock market DSE
File photo of Dhaka Stock Exchange Limited Dhaka Tribune

The proposed budget for the fiscal year 2018-19 has disheartened stock market stakeholders as it did not reflect even a single demand placed for consideration in the budget proposal.

Finance Minister AMA Muhith placed the budget proposal for FY19 in parliament on Thursday. The government has proposed to reduce corporate tax for publicly traded banks, insurance and non-bank financial institutions.

Stakeholders in the capital market said they are disappointed with the proposed budget, as there is no mention of the stock market in it. 

The chiefs of the two bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) told the Dhaka Tribune on Thursday that their demands were not taken into account.

“In the proposed budget, the government did not consider the demands badly needed for the stock market to make it vibrant. But we are not losing hope and we will sit with the minister to place our demands for reconsideration,” DSE MD, KAM Majedur Rahman said. 

“I hope that for the sake of small investors, the minister will pay heed to our demands,” he added.

Former DSE president Shakil Rizvi said: “I think the government should cut the corporate tax rate as well as the savings certificate rate,” he said.

Mostaque Ahmed Sadeque, president of DSE Brokers Association (DBA), said: “If the corporate tax on listed companies is reduced, the stock market will be stable for a long time.” 

The DSE and CSE MDs urged the government to re-consider at least three of their demands to bring dynamism to the stock market.

The three demands include giving a five-year tax holiday for the post-demutualized stock exchanges and cutting tax-at-source on TREC holders’ share transaction to 0.015% from the existing 0.05%, the tax-free dividend income to Tk1 lakh from the existing Tk25,000.

Finance Minister Muhith said during his budget speech: “It is possible to develop the bond market through the transactions of various types of securities. Keeping this in view, we are going to launch Floating Rate Treasury Bond (BFIU). Already the guidelines and directives have been issued in this regard.”

He also said the government was contemplating the introduction of shariah-based securities.

DSE and CSE separately made the demands in their budget proposals for the fiscal year 2018-19 and placed them before the National Board of Revenue (NBR).

The DSE also urged the government to reduce corporate tax for publicly listed companies to 15% from the current 25% for the fiscal year 2018-19.

At present, publicly listed companies have to pay a minimum of 25% and maximum of 40% tax, based on their business category.

Meanwhile, the Chittagong bourse has demanded 100% tax exemption on the income of stock exchanges for the next two years, for sustainable growth and smooth operation of the exchanges which were presently operating at a loss.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail