Friday, 29 September, 2023

Wider tax gap needed between listed, non-listed firms

Says Planning Minister MA Mannan, stressing the role of capital market in the country

Planning Minister MA Mannan emphasised widening the tax rate gap between listed and non-listed companies to woo good companies into the capital market.

“Stock market cannot be neglected in the budget. A strong capital market can supply necessary capital to an emerging economy like us,” he said.

The minister was addressing a seminar titled “Budget 2023-24: Capital Market Perspective.”

Capital Market Journalists Forum (CMJF) and Bangladesh Merchant Bankers’ Association (BMBA) jointly organised the seminar. 

“Our economy has still not been driven by the capital market. We’re heading towards the end. We’re on the way,” the planning minister said.

“We need money to become a developing economy and the capital market can be the source of that financing. Our journey to that end will start with the stock market,” he added.

Dhaka Stock Exchange chairman Dr. Hafiz Md Hassan said, “The stock market is considered to be the main driver of the economy in big countries of the world while it is being cornered in our country.”

The DSE chairman still expressed his optimism about the country’s capital market.

“I believe that the share market can’t be neglected because it is linked to all types of people. Besides, the economy’s future also lies in it,” he stressed.

Chittagong Stock Exchange (CSE) chairman Asif Ibrahim said, “It is not possible to bring the economy to a stable situation if a long investment space is not created from the capital market.”

“At the same time, importance should be given to the bond market for a long-term investment,” he emphasised.

CSE chairman said, “Most of the industrialisation in Bangladesh so far has been done through banks. But it should have been done through the share market.”

He raised the issue of no legal bindings for the multi-national companies’ to be listed in the share market although they were doing business in the country.

“It (the listing) should have been made mandatory much earlier.”

Asif Ibrahim urged the government to take necessary steps to ensure their listing.

BMBA president Sayedur Rahman said, “It is not possible to become a wealthy nation depending on banks only whereas most of the countries have developed riding on the capital market.”

He said that double taxation would need to be removed to advance the capital market.

BMBA president called for widening the tax gap between listed and non-listed companies  to at least 15 percent to lure good companies.

In response to the BMBA president, Planning Minister MA Mannan said, “There should not be any double taxation.”

He assured the meeting of discussing the matter with his colleagues.