Friday, 21 January, 2022

Rationalise tax in stock market: DCCI

  • Staff Correspondent
  • 20 December, 2021 12:00 AM
  • Print news

Tax differences between listed and non-listed companies should be rationalisedso the good companies feel encouraged to be listed with the capital market, said a top trade body.

Dhaka Chamber of Commerce and Industry (DCCI) president Rizwan Rahman came up with the suggestions during a courtesy call on Bangladesh Securities and Exchange Commission chairmanProf ShibliRubayat-Ul-Islamat the latter’s office in Dhaka on Sunday.

Citing Global Infrastructure Hub Report, DCCI chief said Bangladesh will need to invest $608 billion during the years 2016-2040 in the infrastructure sector.

The current trend indicates that Bangladesh will be able to meet $417 billion investment in the infrastructure sector leaving a financing gap of $192 billion by 2040.

“The capital market can play a pivotal role to reduce the investment gap in Bangladesh,” said Rizwan Rahman as quoted in a DCCI press release.

He said the capital market has a huge potential to address the CMSME financing gap as well as to encourage businesses for sourcing long-term capital reducing reliance on banks and other financial institutions.

The DSE SME platform needs to be effectively operationalised as well as listing rules for SME platform needs to be relaxed, according to Rahaman.

To create a vibrant secondary bond market, the priorities need to be placed on implementing an enabling policy to develop market infrastructure, simplification of the bond issuance  process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies, DCCI leader said.

Prof ShibliRubayat-Ul-Islam informed that the BSEC already organised several road shows in the UK, the USA and Switzerland to attract foreign investment in the capital market as well as to brand Bangladesh.

Another road show will be organised in Qatar in next month, he said, inviting the DCCI to join the event and showcase Bangladesh economic advancement.

“The government of Bangladesh is a business friendly and we all should uphold the positive image of the country in the international arena,” BSEC chairman said.

He sought cooperation from the private sector to expedite the country’s branding in a much wider manner.

Prof Islam said Bangladesh has done tremendous progresses in many sectors especially in the infrastructure sector but these achievements did not get much promotion.

DCCI vice president Monowar Hossain was also present on the occasion.