|
|
Change Your Life! |
Tax on listed cos too high, says DSE |
|
News |
March
7, 2000 Terming
the present tax rate ‘too high’ for the listed companies, the Dhaka
Stock Exchange (DSE) has suggested that it be reduced to 30 percent from
the existing 35 per cent in the upcoming 2000-2001 budgets.
Currently
the listed companies pay 35 per cent tax to the government while the
non-listed companies are subjected and non-listed companies.
“This
would also encourage good companies to go for share floatation and
increase liquidity in the market,” the proposal said.
The
bourse also called for the withdrawal of advance income tax on bonus
shares, which was introduced, in last year’s budget.
Currently,
tax at source is slapped on dividend income above Tk 30,000 at a rate of
10 percent and is not treated as final.
The
DSE also suggested continuation of the 10 percent tax at source for the
next three years.
Under
the current practice, 20 percent of the income or Tk 1.50 lakh, whichever
is lower, can be treated as investment allowance and one gets 15 percent
tax waiver by investing it.
The
DSE called for increasing the tax waiver limit to 25 percent or Tk 2.50
lakh, whichever is lower for the secondary market. “Such a move will
surely boost the interest of the people and help industrialization in the
country.”
It
also suggested imposition of 2.50 per cent tax on untaxed investment
amounts in the stock market and allow a person to carry on, provided he
agrees keep the investment intact for one year.
“The
move will increase government income from untaxed money and at the same
time raise liquidity in the stock market, “the proposal said.
The
DSE also said that currently there was a provision for re-investing the
tax-waved amounts. “But we advocate ways to get these funds invested in
the stock market.”
Source:
The Daily Star
|