• Thursday, Jan 30, 2020
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Tax-free capital gain limit may be raised to Tk20 lakh

  • Published at 08:30 pm June 23rd, 2014

The government is likely to finalise the ceiling for the tax-free capital gain at Tk20 lakh instead of the proposed Tk10 lakh to protect the interest of the investors and maintain investment flow to the stock market.

To encourage the investors to invest more in the stock market and to protect their interests, the government is now planning not to impose any capital gain tax on profits up to Tk20 lakh as this change will not have that much negative impact on the revenue earnings, a high official of National Board of Revenue (NBR) said yesterday.

The government had earlier proposed imposing 3% tax for gaining over Tk10 lakh profits and 5% tax for gaining above Tk20 lakh profits to collect more revenue to meet its ambitious revenue target of Tk1,49,000 crore set for the upcoming fiscal year.

“There are around 30 lakh beneficiary owner (BO) account holders in the country, who do not pay any taxes on their capital gains, as there had been no such provisions earlier for imposing taxes on capital gains,” said an official.

As the move, which proposed to boost the revenue collection, expanding tax net, has received some criticisms from various quarters and is also feared to have negative impacts on the investors, the finance minister is now considering making some changes in the provision, he said.

The minister is now planning to impose taxes on capital gain over Tk20 lakh although the tax rate is yet to be fixed and the changes are likely to be adjusted in the finance bill just before the parliament passes the bill, he also added.

Different associations including Bangladesh Merchant Bankers Association, Bangladesh Securities Exchange Commission have been pressing the government to withdraw the proposed provision.