B Mirror Desk : The government is introducing several tax incentives in the 2025-26 budget aimed at boosting confidence in the stock market.

The government has outlined several tax incentives aimed at revitalizing the nation’s stock market in the proposed budget for 2025-26. Sources from the Finance Department and the National Board of Revenue (NBR) indicate initiatives such as tax exemptions for investors, reduced tax rates for listed companies, and increased tax obligations for unlisted firms to encourage more listings.

The proposed policy aims to broaden tax exemptions on stock market investments and provide tax concessions on dividend income. Additionally, there is a plan to narrow the tax rate disparity for listed companies to a minimum of 10 percent compared to unlisted ones. Currently, listed banks, insurance, and financial institutions face a tax rate of 37.5 percent, while unlisted companies are taxed at 40 percent, with a proposal to reduce this gap to 5 percent.

Furthermore, there is consideration of raising taxes on mobile operators, potentially increasing the current tax rate from 45 percent to 50 percent to attract companies like Banglalink and Teletalk to the market. Among publicly traded companies, the tax rate is set at 20 percent for those with shares exceeding 10 percent through IPOs, and 22.5 percent for those with 10 percent or less.

The FBCCI, a business organization, has called for a 15 percent tax margin to promote listings and has suggested that companies receiving tax benefits exceeding Tk 10 crore should be mandated to list on the stock market. The Bangladesh Securities and Exchange Commission (BSEC) has also recommended the introduction of tax holiday incentives for new companies. If these initiatives are enacted, it is anticipated that the influx of new companies into the market will rise, leading to increased investment and restored investor confidence.