DSE reiterates demand for allowing black money investment
Scoffing at the critics of whitening black money, Dhaka Stock Exchange (DSE) authorities said they want to see a specific announcement in the next budget on corporate-tax cuts, allowing undisclosed money into the capital market and 'stabilizing fund' for crisis period.
While making the strong plea, DSE President Mohammad Rakibur Rahman yesterday criticised recent comments of former finance adviser AB Mirza Mohammad Azizul Islam against reduction of corporate tax.
Rakib said the comments disappointed him as he thinks that many may feel encouraged to come under tax net if the rate of corporate tax can be slashed.
The premier bourse chief also disagreed with the finance minister's idea about investment of undisclosed money in cement, drug, toy and frozen industries.
He termed this proposition “unrealistic” as he said people would not feel like disclosing their hidden money for investing in industries.
Placing their budget proposals, he suggested that shares of different development projects like Padma Bridge, power plant, TeleTalk and other big projects should be released for trading so that people can invest their undisclosed money through the capital market.
“Undisclosed money is a major part of the economy; it should be allowed to invest in the capital market without paying tax, which will make the capital market vibrant,” said Rakib.
He said if the huge undisclosed money could be brought into the bourse without imposing tax, it would make country's capital market stronger and vibrant and remove liquidity crisis for a long term.
The chief of the country's premier bourse came up with the remarks while addressing a pre-budget press briefing fronting the banner 'Budget-2009-10: Our Expectations' in the DSE conference room.
The stock-exchange leader suggested the government to give up the tendency of bank-based economy and make all-out effort to mobilise investment in the stock markets, which should be channeled for implementing much-needed big national projects like power plants and Padma Bridge.
“Public-private partnership would be the best mechanism to pool finances instead of begging money from external sources,” he said about the need for discarding drip-feed of foreign aid.
He urged the government to reduce tax for financial institutions to 35 percent from 45 percent so that they can increase the rate of dividends for the investors in the capital market.