BMBA wants an opportunity to launder black money in the capital market, Dhaka: Bangladesh Merchant Bankers Association (BMBA) has sought the benefit of investing undisclosed money (black cut) in the budget of 2021-22 to make the capital market more dynamic. The BMBA made the recommendations in a proposal sent to the finance minister on Sunday (June 8th).

BMBA President Chhayedur Rahman said, “We have requested the Finance Minister to reconsider four proposals, including keeping black money investment facility, making the gap between listed and unlisted companies at least 10 per cent.” He said long-term benefits would be reaped if four benefits were given, including the benefit of investing black money in the capital market. Will play a role in making the market dynamic.

Among the issues that have been proposed to the Finance Minister for reconsideration in the budget to get long-term benefits from the capital market is to increase the tax gap between listed and unlisted companies. In the proposed budget, the tax rate for listed and unlisted companies has been reduced by 2.5 per cent. If the tax gap is widened further, companies with good performance will be encouraged to be listed on the capital market. Therefore, BMBA has proposed to increase the tax rate gap between listed and unlisted companies.

Source tax: Companies pay 20 percent tax on dividends. On the other hand, the source tax is 10 percent when distributing dividends. This reduction in double taxation will encourage investors to make long-term investments in the capital market.

Opportunity to invest black money in the capital market: Last year, the government gave the opportunity to launder black money by investing in various sectors. As a result, these funds have flowed into the capital market. As a result, transactions in the market have increased. If the government gives the opportunity to invest black money in the capital market again, the flow of money in the market will continue. This will increase the depth of the market.

Merchant Banks Tax Rate: 30 percent tax rate for other intermediaries associated with the capital market. But the tax rate for merchant banks is 36.50 percent. BMBA has proposed to share long-term growth in the capital market by reducing the tax rate for merchant banks to 30 per cent.

Source: Share Barta 24 by

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