Merchant bankers have made a set of proposals including the reduction of corporate tax for listed companies.
Their proposals came following the government's budgetary measures proposed for the fiscal year (FY) 2020-21.
The proposals made by Bangladesh Association of Merchant Bankers (BMBA) were sent to the finance minister on Sunday.
In its proposal, the BMBA said the gap of corporate tax paid by listed and non-listed companies should be enhanced by reducing the tax of first one.
They said the corporate tax rate for listed companies should be reduced to 20 per cent from the existing 25 per cent.
In the budget proposal, the government has proposed a reduction of 2.50 per cent corporate tax for non-listed companies.
"Non-listed companies will not be interested to go public unless the tax gap for listed and non-listed companies is increased," the BMBA proposal said.
The merchant bankers have also made the proposal of unconditional scope of investing undisclosed money in the capital market.
"Otherwise, the undisclosed money will be invested in other areas,"
The merchant bankers have also proposed to withdraw the tax of zero coupon bond to make it more popular.
Besides, they have urged the government to reduce the tax to be imposed on the income of bond.
The government proposed 5.0 per cent tax on the income to be realised from the bond.
The BMBA has made the proposal of reducing the corporate tax of merchant bankers by 5.0 per cent. Presently, the merchant bankers pay corporate tax a rate of 37.50.
Another proposal is to reduce the tax at source to 0.015 from 0.05 per cent imposed on the commission realised from the transactions of listed securities.
