Bangladesh Association of Publicly Listed Companies (BAPLC) has expressed concern that the burden of tax on capital gains of individual investors of more than 50 lakh taka will have a negative impact on the capital market. The organization demanded the withdrawal of the tax proposal in the proposed fiscal year 2024-25 budget.

The organization said that since 2010, all types of investors except entrepreneurial shareholders/directors of banks, financial institutions, merchant banks, insurance companies, leasing companies, portfolio management companies, stock dealers, or stock broker companies, holding 10 percent and more of the paid-up capital were exempted from tax. Currently, there is a recession in the capital market. This decision by Karoop may further discourage investors from investing. Although the government has taken this decision to increase its revenue.

According to BAPLC, the main challenge of taxing capital gains above taka 50 lakh is that individual investors now have to pay tax at regular rates, which is higher than the 10 percent capital gains tax for company taxpayers. Even the proposal does not clarify how investors will deal with tax and investment strategy planning challenges. BAPLC recommends the withdrawal of tax on capital gains above taka 50 lakh for individual taxpayers for a fair and attractive investment environment.