DSE urges not to impose capital gains tax on individual investors

The Dhaka Stock Exchange (DSE) on Tuesday urged the government not to impose capital gains tax on individual investors in the upcoming national budget for the fiscal 2024-25.

"The market needs additional facilities to invigorate investor confidence. Governmental financial policies that ensure the long-term stability of capital markets, are essential," said DSE Chairman Professor Dr Hafiz Md Hasan.

Hafiz said this during a pre-budget press conference at the Dhaka Club in the city, reports BSS.

The DSE board of directors, present at the conference, highlighted the importance of the capital market, which supports the livelihoods of about one crore people in Bangladesh.

In his speech, Hafiz laid emphasis on the detrimental effects of the Covid-19 pandemic and ongoing global conflicts on stock market investments.

The DSE outlined five critical demands for the FY 2024-25 budget, including no new taxes on the capital market, and reduction of withholding tax on brokerage house transactions.

It also demanded a corporate tax gap of at least 20 percent between listed and unlisted companies, dividend income up to Tk 50,000 to be tax-free, and complete tax exemption on bond income.

Dr Hafiz highlighted that 90 percent of investors in the stock market are institutional investors, who currently face a 5-10 percent tax on capital gains.

"The remaining 10 percent are individual investors. If individual investors are taxed on capital gains, it will negatively impact the market," he said.