The DSE has already submitted several tax-related proposals to the NBR for inclusion in the budget for fiscal year 2024–25 to further develop and accelerate investment in the capital market
The Dhaka Stock Exchange (DSE) Chairman, Professor Dr Hafiz Md Hasan Babu, has urged the National Board of Revenue (NBR) to refrain from imposing a capital gains tax on individual investors.
In a recent press release, he said various media outlets have reported that the NBR is planning to impose a tax on capital gains for individual investors. This news has instilled fear and panic among investors, contributing to the market’s continuous decline.
During this transition period in the capital market, the DSE Chairman has requested the NBR Chairman to consider the interests of investors and not impose a tax on capital gains, reads the press release.
According to market insiders, the NBR’s move to impose a 15% tax on individual investors’ capital gains over Tk40 lakh from the stock market recently triggered a fresh round of sell-offs.
The market stopped falling earlier this month when the Bangladesh Securities and Exchange Commission (BSEC) Chairman, Professor Shibli Rubayat Ul Islam, informed journalists that NBR officials had assured him there would be no imposition of such a tax right now.
However, the market dived deeper following news updates last week that the NBR had initially sought and obtained Prime Minister Sheikh Hasina’s approval to proceed with the capital gain tax, alongside many other tax elements of the upcoming national budget.
The market capitalisation at the Dhaka Stock Exchange (DSE) has plummeted by around Tk20,000 crore over the past six consecutive days.
During the sessions, DSEX, the benchmark index of the DSE, lost 303 points to settle at 5,393, lowest since 19 April 2021.
Source: The Business Standard