DSE to seek tax waiver for SME share trading

Dhaka Stock Exchange in its budget proposal for financial year 2019-20 will seek tax waiver for share transaction of companies that would be listed with the small capitalised board.
The DSE will place its proposal before National Board of Revenue today, DSE officials said.
Transaction of securities listed with SME platform must pay tax at 0.05 per cent in line with the existing law for the main market.
DSE officials said that the exchange was offering a new avenue for SMEs in Bangladesh to access a deep pool of local capital. It is a fund raising initiative to reduce debt burden, enhance corporate profile and create an optimal value for innovative SME entrepreneurs. 
The government must consider and waive the tax from transaction of securities listed with SME platform of the exchanges to facilitate the sustainable development of SMEs, they said.
The bourse will also seek 20 per cent gap in corporate tax rate between listed companies and non-listed companies instead of 10 per cent gap to attract more multinational companies to the capital market.
The bourse will also seek tax exemption on dividend income up to Tk 1 lakh to attract the small investors to invest in capital market and ensure sustainable development of the market.
At present, the capital market is facing serious liquidity crisis. 
If the provision as proposed was taken into consideration, it would help reducing the liquidity crisis of capital market, they said. 
Source: http://www.newagebd.net

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