Dhaka:The DSE Brokers Association of Bangladesh (DBA) has proposed a full tax exemption on capital gains for individual and foreign investors from listed securities until 2030. This initiative aims to restore investor confidence, enhance market liquidity, and encourage long-term investment in the country's capital market.
According to Bangladesh Sangbad Sangstha, the association submitted its proposal to several government officials, including Finance Minister Amir Khosru Mahmud Chowdhury and BSEC Chairman Masud Khan. The current tax exemption allows individual investors to earn capital gains of up to Tk 50 lakh without taxation, while gains above this threshold face a 15 percent tax.
The DBA's proposal includes reinstating full tax exemption for individual investors and adjusting the tax regime for foreign investors. The association argues that these measures would boost stock market activity, encourage reinvestment, and promote effective use of domestic savings.
Additionally, the DBA suggests amending the Income Tax Act, 2023, to exempt capital gains from transactions executed through stock exchanges and settled via the central depository system. However, they recommend maintaining the existing tax regime for sponsors, directors, and institutional investors.
The DBA also highlighted the role of a fully operational Central Counterparty Bangladesh Limited (CCBL) in simplifying capital gains calculation and tax assessment. They advocate for the tax exemption to remain until CCBL becomes fully functional, providing a favorable tax environment during this transitional phase.
DBA President Saiful Islam emphasized that an investment-friendly tax regime would help restore market confidence and expand financing opportunities for listed companies, aligning with the government's capital market development objectives.