The Dhaka Stock Exchange (DSE) on Tuesday urged the government to consider its 6-point proposal on the budget for the fiscal year 2023-24, to encourage investment. DSE Board of Directors Chairman, Professor Hafiz Hasan Babu made the call from a 'post-budget press conference' at a hotel in the capital on Tuesday. The proposals are tax-exemption for earned interest on bonds, to reduce the tax gap between listed and non-listed companies to 10 percent, reduce VAT from 15 percent to 10 percent for companies in the capital market, reduce the tax gap to 10 percent for stock exchange SME companies, and reduce tax at source on broker houses’ transactions. Also Read: DSE seeks inclusion of four points to facilitate investors  In a written speech at the press conference, DSE Chairman said that currently, the size of the corporate bond market is very small which creates limitations in the capital market as well as in the financial market. Also Read: DSE market capitalisation increased by Tk4.5 lakh crore in 2022 “A well-functioning bond market can help the economy in several ways. Exemption of tax on interest in all types of bonds would encourage creating a strong bond market," he said.    

Chairman of National Revenue Board (NBR) Abu Hena Md. Rahmatul Muneem on Tuesday said lack of self-motivation to pay tax exists in the country and even government entities are seeking tax exemption. He urged the government entities to start a culture of paying tax from self-responsibility to the state instead of creating pressure for tax exemption. The NBR chairman was addressing a pre-budget discussion with the Economic Reporters’ Forum (ERF) members. Placing a budget proposal for the upcoming fiscal year 2022-23, the ERF has urged the NBR for a comprehensive survey and research to determine the actual number of taxable citizens in the country. Such a study will be justified to increase revenue income along with identifying the actual number of taxable people and  encourage them to pay income tax, said ERF in their budget proposal for the upcoming  FY 2022-23. ERF president Sharmeen Rinvi and General Secretary SM Rashidul Islam presented the proposal to NBR Chairman. Sharmin said experts believe that a large number of people have crossed the taxable income in the last ten years due to the growth of the country's economy, but they did not pay tax yet. Though around 2.5 million have been paying tax regularly among the 7 million TIN holders, the actual taxable people crossed 20 million, which can be determined by a comprehensive survey, she said. ERF said foreign nationals should be brought under the tax net adding that over 85,000 foreign nationals work in Bangladesh. But only 14/15 thousand of them submitted income tax to NBR. According to a study by TIB, foreigners working in the country take away Tk 26,000 crore a year. The NBR needs to step up its efforts to bring foreign nationals under the tax net, ERF budget proposal said. Rashidul urged NBR to install a user-friendly online system for encouraging people to pay income tax in a hassle free environment. He emphasized completion of the warehouse automation project to bring order in the bonded warehouse management. To prevent irregularities in the sector and create more export-friendly bond management, the entire process needs to be brought under automation by expeditious completion of the Bonded Warehouse Automation project, said ERF. NBR members, senior tax officials and ERF members were also present at the event.