DHAKA: With a view to incentivizing the small investors and strengthening the capital market, Finance Minsiter AHM Mustafa Kamal proposed to enhance tax exemption limit up to Tk. 50,000 from existing Tk 25,000.
The minister has placed the FY20 national budget on Thursday (June 13) with a theme “Bangladesh on a Pathway to Prosperity; Time is Ours, Time for Bangladesh.”
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: 2017 HRS, JUNE 13, 2019