The Dhaka Stock Exchange (DSE) has sought exemption from tax at source on the sales value of its 25 per cent shares to a Chinese consortium.
Besides, the premier bourse sought full waiver of tax on its income for one more fiscal year so that it could enhance capacity and develop infrastructure.
A DSE delegation put forward the proposals at a meeting with Finance Minister AMA Muhith at his office on Tuesday.
The premier bourse had earlier submitted a set of pre-budget proposals, including reduction of tax at source, to the National Board of Revenue (NBR).
Minhaz Mannan Emon, a DSE director, said the exchange's shareholders would invest the total proceeds from the transfer of shares to the Chinese consortium in the capital market if the government offers the tax waiver.
"It will be a long term investment in the market," he said.
The Dhaka bourse signed a share purchase agreement with a Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange on May 14.
On completion of relevant formalities, 250 shareholders of the DSE will receive over Tk 9.46 billion from the consortium. An amount of Tk 1.10 billion would be charged as taxes on the transaction value.
Each of the DSE shareholders will be required to transfer 25 per cent of their share to the consortium.
Mr Emon said the premier bourse has sought full income tax waiver for one more fiscal year to enhance its technical capacity and develop infrastructure.
The DSE delegation also urged the finance minister to reduce the tax at source on brokerage commission.
"We have proposed to reduce the tax at source to 0.015 per cent from existing 0.05 per cent," said the DSE director.
