Double taxation on dividend from listed companies will also be removed
The proposed budget for fiscal year (FY) 2019-20 has mentioned that if the tax-free dividend income is increased to TK 50,000 and a 15% tax on stock dividend distributed to the shareholders is imposed, this can help rejuvenate the country’s capital market.
The directors of Dhaka Stock Exchange (DSE) said this after the first session of the proposed national budget ended in the parliament on Thursday.
DSE Managing Director KAM Majedur Rahman during his primary budget reaction told Dhaka Tribune: “The proposed budget is capital market friendly. It will fulfil the expectations of general investors.”
Finance Minister AHM Mustafa Kamal on Thursday proposed Tk5,23,190 crore budget for the FY 2019-20 in the parliament.
Prime Minister Sheikh Hasina, also read out part of the proposed budget speech on behalf of the finance minister, as he felt sick.
In his budget speech, Kamal proposed to raise tax-free dividend income to TK50,000 which is now Tk25,000. Also 15% tax has been imposed on stock dividend distributed to shareholders by any listed companies.
“Double taxation on dividend from listed companies will also be removed. Special incentives will continue to encourage investment in the capital market.” Kamal said.
Majedur further said: The proposed budget for will create a favourable environment in the stock market and the national economy will become more dynamic.”
DSE Director Minhaz Mannan Emon told Dhaka Tribune: “This year's budget will directly benefit small investors. We hope more new investors will come to the market. The liquidity crisis will be overcome also.”
Meanwhile, a number of financial tools for bringing transparency in the financial sector and a bank commission were also proposed.