In a pre-budget discussion held at the NBR (National Board of Revenue) office on Monday, NBR Chairman Md. Abdur Rahman Khan announced that the excise duty on bank deposits will be reduced in the upcoming budget.
The decision comes in response to a proposal from the Bangladesh Association of Banks, which recommended lowering the excise duty on deposits. The NBR Chairman stated, “The excise duty on bank deposits will be reduced, even if it is a small reduction.” Additionally, he confirmed that the excise duty on loan accounts and credit cards will be withdrawn.
The pre-budget discussion also involved key stakeholders, including the Dhaka Stock Exchange (DSE), DSE Brokerage Association, Bangladesh Merchant Bankers Association, and Bangladesh Insurance Association.
During the discussion, the Dhaka Stock Exchange proposed reducing income tax on capital gains and corporate dividends, as well as cutting turnover tax.
In response, the NBR Chairman remarked, “Reducing tax rates in the stock market has not led to any benefits. There is no tax on income up to fifty lacs taka. Only when someone earns over fifty lacs taka does a tax apply, and the rate has been reduced to 15%. But despite this, the market has been continuously declining. The issue in the stock market is not the tax structure but the lack of good governance. The market has been destroyed in many ways.”
He further emphasized the importance of economic development, stating, “Raising capital from the stock market is free, yet companies are still reluctant to list. Clearly, there are problems in the process. There are many problematic companies in the market, and investors have been deceived by investing in them. They feel that their investments are not safe. The question is, how do we bring them back to the market?”
Liberty News’ economic correspondent states that however, the Chairman assured that the reduction of turnover tax in the stock market will be considered in the upcoming budget.
LND/BG
