Investment of undisclosed money to boost market

Investment of undisclosed money in the capital market will make the market stronger with a liquidity glut in the coming days, Dhaka Stock Exchange authorities said yesterday.
“It (investment of undisclosed money) will also bring pace in the economic growth. It's an initiative to bring the idle money into mainstream economy through the stock market,” Rakibur Rahman, president of DSE, told a post-budget press conference on the DSE premises.
Finance Minister AMA Muhith proposed in the budget allowing undisclosed money for investment for the next three financial years at a 10 percent tax rate on the amount, with a caveat that the whitened money must be invested in any of the 62 prescribed sectors, including stock market.
The DSE president said allowing such investment in the capital market would not discourage people from paying taxes.
“The government has accepted our suggestion. I don't think the decision will discourage people from paying taxes,” he said.
Replying to queries, Rahman said: “We won't seek investment of undisclosed or black money in the market after the expiry of the money whitening provision.”
Appreciating the PPP (public-private partnership) initiatives, the DSE chief said the government should ensure a workforce with honest, dedicated and skilled people to implement 70 percent of the PPP projects within one year.
He also hailed the government for taking initiative to sign two agreements with international rating agencies to determine sovereign credit rating for Bangladesh. “If the agreements are signed, foreign investment flow will get a momentum,” he said.
Rahman however was critical of not reducing corporate tax for banks and non-bank financial institutions. “The government should reconsider our earlier demand for corporate tax cut. I hope the government will accept it,” he added.
Meanwhile, Chittagong Stock Exchange in a written reaction to the proposed budget urged the government to withdraw its decision to increase tax on turnover from the existing 0.015 percent to 0.025 percent.
However the CSE hailed the government for its consideration of mobilising funds from the stock market instead of banking sources.