FE Report
Dhaka Stock Exchange (DSE) Monday urged the government not to impose any tax on the profit earned from investment in stocks.
The appeal came from the DSE leaders at a press briefing arranged in the city following a sharp fall in stock prices on the news that the government might impose 5.0 per cent tax in the upcoming budget on gains from stock market.
DSE president Shakil Rizvi felt that the time was not ripe to impose tax on profits earned by investors from stock market. "The investors should pay taxes to help the government. But it should be considered later by making the procedures of tax collection easy and taxpayers' friendly," he said.
Mr. Rizivi saw no abnormality in the behaviour of the market. " The market is quite normal', he claimed.
Immediate past president of DSE Md Rakibur Rahman speaking at the press conference termed the news item published in a section of the media on imposition of tax on profit from capital market as baseless.
But when the reporters wanted to know from him how could he be certain about the authenticity of the news item, Mr. Rakib backed down saying that it was their assumption.
"We believe that the government will not impose taxes on the profit gained from the capital market," Mr Rakib said.
Former finance advisor Mirza AB Azizul Islam, talking to the FE, said the market would not be affected even if the government imposes a minimum tax on profit from stock market.
"The DSE should rather put pressure on the government to offload the shares of state-owned enterprises to help increase supply of securities in a over-priced market," Mr Islam said.
A former SEC chairman Faruq Ahmad Siddiqui said that from the moral point of view a small amount of tax could be imposed on profit earned from the investment in capital market.
"But some problems may arise at the time of tax collection," he said.
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