BM Desk: The forthcoming fiscal year 2025–2026 budget proposal is commendable. Furthermore, the government is sincerely dedicated to developing the capital market, according to Khandaker Rashed Maksud, Chairman of the Bangladesh Securities and Exchange Commission (BSEC). Md. Abul Kalam, the director and spokesperson for the BSEC, revealed this information in a news statement on Tuesday, June 3.

In his address, he noted that the interim government is working towards revitalizing the economy, which was nearly devastated following the July uprising. During this national crisis, the Advisory Council of the interim government successfully ratified the proposed budget for the fiscal year 2025-26 along with the Finance Bill for the same year on June 2, which is commendable.

He further mentioned that the proposed budget for the fiscal year 2025-26 includes several positive elements for the capital market. The five guidelines from the Chief Advisor regarding capital market issues have been thoroughly incorporated into the budget speech delivered by the Financial Advisor. The Chief Advisor’s directive also highlighted the direct listing of multinational corporations in the capital market and the listing of prominent domestic companies with strong fundamentals. Furthermore, the directive called for the engagement of foreign consultants to facilitate necessary reforms in the capital market. It also emphasized the need for stringent actions against breaches of discipline and irregularities by institutions and individuals associated with the capital market. Most importantly, it stated that the government should extend policy support to the capital market to enable it to serve as the cornerstone of the future economy.

Rashed Maksud remarked that recognizing the significance of the capital market, the government has raised the corporate tax rate differential between listed and unlisted companies in the capital market from 5% to 7.5% to foster its development, thereby allowing companies listed in the capital market to benefit from a corporate tax exemption. This initiative is expected to stimulate both domestic and foreign investment.transaction volume; this tax exemption is expected to increase capital market transactions in the future and encourage investment.

In addition, the corporate tax rate of merchant banks operating in the capital market has been reduced by 10 percent. Earlier, merchant banks had to pay tax at a rate of 37.5%. Now it is being reduced to 27.5%. As a result, merchant banks will be encouraged to work for the development of the capital market. Merchant banks are important stakeholders in the capital market. The role of merchant banks in increasing the supply of good shares in the sustainable development of the capital market is important.

In addition, in the interest of investors in the capital market, immediately after the interim government took office, the government’s initiative was to reduce the tax rate on capital gains tax earned from the sale of shares of companies listed in the capital market through a notification issued by the National Board of Revenue (NBR) on November 4 last year. At that time, the maximum tax rate on capital gains earned was reduced by half from 30 percent to 15 percent. It is clear from the above steps that the government is very positive and sincere about the development of the capital market.

In addition, for the welfare and protection of investors, the capital market regulator BSEC has already taken a policy decision to reduce the annual maintenance fee charged on investors’ BO accounts by about 70% from 450 taka to 150 taka and has also decided to deposit 25% of the interest earned from the integrated customer account in the Investor Protection Fund. Through this, general investors will directly benefit.

He requested the government to reconsider in the budget the issue of waiving tax on dividends earned up to one lakh taka and imposing a 15 percent tax on dividends earned above one lakh taka, considering it as a final tax, considering the long-standing demand of investors and market stakeholders.