Tax on share income

We applaud the timely and well-justified stand of Prime Minister Sheikh Hasina on the imposition of controversial and unjustified Capital Gain Tax on income from sale of shares in the just passed financial bill -2014. Some over-zealous officials, armchair economists and some ministers wanted to please the prime minister by theoretically collecting more taxes through the Capital Gain Tax instrument. Good that their efforts bore no fruit and good sense has prevailed.
Bangladesh share market is still limping; it is yet to be stabilised and become robust like in the Western countries or India or even Pakistan. Daily trade and transaction volumes speak immensely about the ground realities.
In the future, the competent authorities should also take into cognizance capital losses while considering Capital Gain Tax on sale of shares. In Australia, there are provisions for capital loss relief. The losers should also be given relief which may be 10-20 percent of the capital invested or on the actual amount of loss incurred.
Dr. SN Mamoon
Dhaka