Currently, the publicly listed companies have to pay between 25% and 40% in corporation tax based on their business types
Chittagong Stock Exchange (CSE) on Wednesday urged the government to reduce corporate tax for publicly listed companies to 20% in the next budget for 2020-21 fiscal year.
Currently, the publicly listed companies have to pay between 25% and 40% in corporation tax based on their business types.
The National Board of Revenue (NBR) received these proposals from CSE.
A reduction in the corporate tax rate will help generate the government more revenue, the proposal says.
The port city bourse also proposed an exemption of tax on the dividends for listed companies up to Tk1,00,000 from existing Tk50,000 to increase the participation of small investors in the stock business.
The CSE also suggested reducing source tax on share transactions to 0.015% from the existing 0.05%, considering the current volatile state of the market.
Besides, they urged tax exemption on transaction of securities listed with the SME platforms.
The exchange said that stock market was offering a new avenue for SMEs in Bangladesh to access a huge pool of local capital — a fund raising initiative to reduce debt burden, enhance corporate profile, and create an optimal value for innovative SME entrepreneurs.
The bourse also sought 100% tax exemption on bond transactions and income of stock exchanges.