Pre-budget discussion with burses
Staff Correspondent: Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) demand the opportunities to invest black money in the capital market as usual.
The demand made during a pre-budget discussion for the fiscal year 2022-2023 at the Board of Revenue conference room in the capital’s Segunbagichayesterday.
The Board of Revenue held discussions with officials of various financial institutions, insurance, leasing and merchant banks, Dhaka Stock Exchange and Chittagong Stock Exchange under the chairmanship of NBR customs member (customs policy) Masud Sadiq.
Ghulam Farooq, General Manager of CSE, in his pre-budget proposal, said that the proposed Income-tax Act-2022 has withdrawn the provision of not raising questions about the source of undisclosed funds in the capital market if the tax is paid at a fixed rate. But we think the provision can be upheld. This is because if this provision of the existing law is kept intact in the proposed income tax law, different classes of taxpayers will be able to invest their legitimate earned undisclosed money in the capital market.
In response to this proposal, Masood Sadiq said, when the issue of undisclosed income investment is raised from different angles at different times, then you are not available. Nothing is said from your forum then.
The budget for the current financial year deals with undisclosed investments – regardless of the prevailing law, individual taxpayers will be required to file income tax returns in the current financial year at a fixed rate per square meter for land, buildings, flats and apartments and cash, bank deposits, savings. No one, including the authorities, will be able to question if an income tax return with a 10 per cent tax on bonds or any securities is shown.
At the same time, if the individual taxpayers invest money in the capital market and pay 10 percent tax on that investment, no authority including income tax will question.
During the discussion, M Saifur Rahman Majumder, Chief Operating Officer of Dhaka Stock Exchange Limited, demanded withdrawal of tax applicable on interest earned on all types of bonds in his proposal to expand the bond market.
He also proposed tax rebates for investing in listed shares, mutual funds or debentures, cash dividends received from mutual funds or unit funds, income tax-free, raising the tax-free dividend limit, and reducing the tax rate on listed companies.
On the other hand, the Bangladesh Insurance Association demanded a 5 per cent gain tax deduction on life insurance policyholders. It is also proposed to increase the corporate tax rate of insurance companies to 35 per cent for non-life insurance companies and 30 per cent for life insurance companies without keeping it equal to that of bank companies.
NBR member (VAT policy) Zakia Sultana and member (income tax policy) Sams Uddin Ahmed were present at the time.
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