The DSE Brokers Association of Bangladesh (DBA) has proposed a full tax exemption on capital gains earned by individual and foreign investors from listed securities until 2030 to restore investor confidence, boost market turnover and liquidity, and encourage long-term investment.

The association submitted the proposal on Wednesday (October 28) to Finance Minister Amir Khosru Mahmud Chowdhury, Prime Minister’s Special Assistant for Investment and Capital Market Tanvir Shariar Gani, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan, and National Board of Revenue (NBR) Chairman Ahsan Habib.

Currently, individual investors enjoy tax exemption on capital gains of up to Tk 50 lakh from listed securities, while gains exceeding this threshold are generally subject to a 15 per cent tax. The DBA has proposed restoring full tax exemption for individual investors and reviewing the tax arrangements for foreign individual and institutional investors.

According to the association, implementing the proposal would increase market transactions, encourage the reinvestment of profits and promote the productive use of domestic savings. It could also expand equity financing opportunities for listed companies.

The proposal recommends amending relevant provisions of the Income Tax Act, 2023, to exempt capital gains from eligible transactions executed through stock exchanges and settled through the designated central depository system. However, the DBA has suggested retaining the existing tax arrangements for sponsors, directors and institutional investors.

The association believes that the full operation of Central Counterparty Bangladesh Limited (CCBL) would simplify capital gains calculations and tax assessments. Considering this, it has sought the exemption until 2030, when CCBL is expected to become fully operational.

DBA President Saiful Islam said an investor-friendly tax regime for individual and foreign investors would help restore confidence in the capital market, encourage long-term investment and expand financing opportunities for listed companies.

The association urged the relevant government authorities to consider the proposal and take necessary policy and legal measures. It also pledged to continue working with the government, regulators and other stakeholders to support the development of the country’s capital market.