Bourses propose Tk 100 fee for BO account

Stock exchanges have proposed a Tk 100 fee for each BO (beneficiary owner's) account instead of tax identification number (TIN) that the National Board of Revenue suggested earlier for such accounts.
Central Depository Bangladesh Ltd (CDBL) will collect the fee every year and deposit the money to the government exchequer, said leaders and officials of the bourses yesterday at a pre-budget meeting with the NBR.
At present there are around 24 lakh BO accounts, necessary for electronic share transaction, with the CDBL, the operator of Central Depository System.
The 24 lakh BO accounts mean the government can get Tk 24 crore as revenue from the stockmarket investors.
But if the TIN is made mandatory, the number of BO account holders may come down to four to five lakh as many investors think they will face hassle for TIN, the representatives of the bourses explained to the NBR.
Earlier last month, the NBR as part of its plan to expand tax net proposed citing TIN in every BO account.
The NBR said it will not take any decision or impose any regulation that hampers the stockmarket growth or will not ensure the interest of the general investors.
Presidents, vice-presidents, chief executive officers and board members of Dhaka and Chittagong stock exchanges attended the meeting with the NBR.
The bourses also proposed that the tax administrator reduce listed companies' corporate tax to 40 percent from the existing 42.5 percent. They also said if a listed company declares dividend at the rate of 20 percent or more, 15 percent tax rebate should be there for the company.
They also said individual tax on dividend -- 10 percent -- at source should be the final tax.
The bourses and the NBR also discussed legalising undisclosed and untaxed money through investing in the stockmarket that is allowed until June this year.
The bourses will submit a set of proposals to the NBR soon.