The DSE Brokers Association urged the government to reconsider four proposals in the final budget, including reduction of AIT of its members to 0.015 per cent from the existing 0.05 per cent to survive from huge losses due to the ongoing Covid-19 pandemic.
Sharif Anwar Hossain, President of DSE Brokers Association of Bangladesh, in a statement on Thursday, said commission on share transactions which is the major income of the stockbrokers, came down significantly in recent times at the Dhaka Stock Exchange (DSE).
Mr Hossain said, the stockbrokers are incurring huge losses and many brokers already shut down their branches and some are about to shut their branches to save operational expenses due to the ongoing crisis of Covid-19 pandemic.
He said there is correlation between a country's economic development and the capital market development.
“So, the country’s overall stock market development as well as to save the stockbrokers, we urged the Finance Minister to reduce advance income tax (AIT) of its members to 0.015 per cent from the existing 0.05 per cent in the final budget for the FY 2020-21,” said Mr Hossain.
He also urged the government to withdraw the condition of three years lock-in period in case of investing undisclosed money in stocks and imposition of 5.0 per cent tax instead of 10 per cent.
The DSE Brokers also urged to reduce 2.50 per cent corporate tax of publicly traded companies like non-listing companies.
The DSE Brokers also urged to increase the dividend income exemption limit to Tk 200,000 from the existing Tk 50,000 with a view to spur market condition.
“Considering the present market scenario, small investors should be allowed for tax exemption up to Tk 200,000 on dividend income as it will help them to invest in the capital market which will ultimately enhance the capital market growth and development,” he said.
‘If the limit increased, small investors will be benefited as they have suffered a lot due to market turmoil in recent years”.
He urged the government to consider the above proposals to survive from huge business losses due to the ongoing crisis of the pandemic and greater interest of investors as well as the capital market development.