Budget offers capital market ‘nothing’, say stakeholders

Share market stakeholders have expressed frustration at the proposed budget, though the finance minister expects a vibrant share market.

They said the budget had offered them ‘nothing’.
 
After AMA Muhith placed the budget in Parliament on Thursday, Dhaka Stock Exchange Senior Vice-president Ahmad Rashid Lali said they had not received the support they were expecting.

He told bdnews24.com, “The budget has not reflected the requirements of the Dhaka and Chittagong Stock Exchanges.”

“One can say this budget has nothing for the capital market,” he added.

The authorities of Bangladesh’s two bourses have been demanding a three-year extension of the 100 percent tax holiday for the capital markets.

IDLC Investment Limited Managing Director Md Muniruzzaman, however, told bdnews24.com, “There is an insignificant offer for capital market investors and that does not seem to have any impact.”

The finance minister proposed keeping beyond the tax net up to Tk 1 million interest waived by financial institutions. At present, the waived interest is considered an earning of the loanee and subject to tax.

Highlighting different measures of the government, he said, “The capital market is now being properly regulated and has become stable as a result.

“It is now ready to flourish as a pillar of the financial sector. Hopefully, the market will become vibrant again now after massive speculation opportunities have been removed.”

Muhith said a project was being implemented with the help of the ADB for an overall reform and development of the capital market.