Waiver of tax on stock face value proposed

Finance Minister AMA Muhith proposed waiver of the 3 percent tax on the premium over the face value of shares of a company in the stock market.

Placing his budget proposal at the parliament Thursday, he insisted that the move will motivate new companies to enlist with the capital market.

To help with the continual expansion and solidification of the market, Muhith proposed to continue the existing provision of exemption of tax on gains from transactions of shares by individual taxpayers in addition to other fresh incentives.

Referring to the demutualisation of the stock market, Muhith said that the government has a plan to consider tax exemption when the demutualisation act is put into effect.

He also proposed to repeal the provision of charging 0.05 percent tax at source on the total income from bond sale and also allow 15 percent tax rebate on investment in private alongside public mutual fund.

Furthermore, he suggested increasing the threshold of tax exempted income from dividend from Tk 5,000 to Tk 10,000.