DHAKA: The Dhaka Stock Exchange (DSE) has said that proposed budget for 2019-20 fiscal year has become a capital market friendly.
DSE Managing Director (MD) KAM Majedur Rahman told this at a press conference over the proposed budget at the DSE office in the capital on Sunday (June 16).
Earlier on June 13, in the FY20 fiscal budget, Finance Minsiter AHM Mustafa Kamal proposed to enhance tax exemption limit up to Tk 50,000 from existing Tk 25,000 with a view to incentivizing the small investors and strengthening the capital market.
Kamal, in his budget speech, said, “In order to encourage the distribution of cash dividend, I propose imposition of 15 percent tax on stock dividend distributed to the shareholders by any listed company.”
“Therefore, 15 percent additional tax has been proposed on so much of retained earnings and reserves as it exceeds 50 percent of the paid up capital of the company”, he added.
As per new budget, dividend up to Tk 50,000 received from the publicly traded company is exempted from tax. However, this exemption will only be applicable for the individual taxpayers.
BDST: 1351 HRS, JUNE 16, 2019