The Dhaka Stock Exchange (DSE) has demanded an increase in the corporate tax rate gap between listed and non-listed companies as it thinks that if the gap is not increased, many companies will be discouraged from entering the capital market.
At present, the corporate tax rate gap between listed and non-listed companies is 7.5%.
At a post-budget press conference in the capital on Monday, the country's premier bourse called for increasing the gap to 10%.
Regarding the proposed budget for the fiscal year 2022-23, it said this year's budget focuses on inflation, agriculture, health, human resources, employment and education, among others, which is the manifestation of a far-reaching plan for the overall economic development of the country.
However, the company demanded that the stock exchange consider some proposals to take the stock market forward in the proposed budget.
The stock exchange also demanded that interest on all types of corporate bonds, such as zero coupon bonds, be kept tax-free, regardless of the investor, to boost the country's bond market.
"This will create opportunities for the corporate bond market to grow. DSE thinks it will benefit the country's stock market and the economy as a whole," DSE Chairman Md Eunusur Rahman said at the press conference.
In order to attract long-term investors in the stock market, he proposed to increase the tax-free dividend limit from Tk50,000 to a minimum of Tk100,000.
He also demanded that the source tax from dividends be considered as final tax liability.
Including a reduction in source tax for its members, the DSE also demanded that the tax on corporate shareholders' dividend income be reduced from 20% to 10%.