DSE hails incentives proposed in new budget to boost stock market

Appreciating the proposals regarding the country’s capital market, Dhaka Stock Exchange (DSE) president M Rakibur Rahman on Saturday said the incentives proposed in the new national budget will help expedite industrialization in the country through strengthening the market.

“We welcome the government for giving special importance to the capital market in the proposed budget. We hope it’ll help expedite industrialization through expanding the market,” he said while addressing a press conference at the DSE Bhaban in the city.

Describing the incentives proposed by the Finance Minister for the 2012-13 fiscal, Rakibur Rahman said they have seen reflection of the investors’ desire in the proposed budget. “It shows there is no lack of sincerity for the development of the capital market.”

He also thanked the government for keeping intact all the incentives that had been provided in the outgoing fiscal year including the opportunity to invest undisclosed money in the capital market.

In his budget speech in Parliament on Thursday, Finance Minister AMA Muhith proposed some new incentives, including tax exemption on dividend income up to Tk 5,000, to help the capital market investors to recoup their huge losses to some extent.

Apart from the new incentives, Muhith assured that the incentives that had been provided in the outgoing fiscal would be kept intact for the coming fiscal (2012-2013) in a bid to strengthen the capital market and maintain its stability.

The Finance Minister proposed to reduce the income tax rate of merchant banks from 42.5 to 37.5 percent. Besides, if any company transfers 20 percent of its paid up capital through Initial Public Offering (IPO) to capital the market, it will enjoy 10 percent tax rebate on its payable tax in the relevant year.

The dividend income on share trading up to Tk 5,000 will be exempted from tax, which is now added to the main income of an individual and the tax is calculated on the total amount.

Muhith supported the government initiative to bring the mobile phone companies in the capital market by 10% tax redemption if they invest in the market.

The DSE president said that the draft of a law on Financial Reporting has been finalized and will be in place formally in the coming fiscal. ‘It’ll help maintain stability in the capital market.”

He also informed that an initiative has been taken to set up a special court to quickly resolve the cases related to the share market.

Meanwhile, the government has taken initiative to ensure transparency and accountability in trading through establishing state-of-the-art surveillance software.

DSE senior vice president Ahmed Rashid Lali, chief executive officer Dr Musharraf M Hussain, chief financial officer Shuvra Kanti Choudhury, and directors Ahasanul Islam and Khwaja Ghulam Rasul were, among others, present.

News Source: 
UNB