10pc tax rebate for stock investors reintroduced FE Report The National Board of Revenue (NBR) has reintroduced

the tax rebate facility at the rate of 10 per cent on investment in listed issues with the stock exchanges for investors in the secondary market. From the current month, investors in both initial public offerings (IPOs) and in shares, mutual funds and debentures in the secondary market can enjoy this tax rebate as investment allowance. Under one of three separate Statutory Regulatory Orders (SROs) issued by NBR on Sunday, this investment allowance has been allowed. The NBR scrapped the facility for secondary market investors in the original budget for current fiscal. It has now re-introduced the tax rebate, following demands made by the investors. "Any sum invested by an assessee, being an individual, in the acquisition of any stocks or shares of a company, mutual fund or debenture listed with any stock exchange," the SRO said. The NBR also issued a SRO offering tax exemption for foreign investors from capital gains. Public limited companies, owned by foreign or non-resident Bangladeshis, can enjoy tax exemption facility on capital gains made through investments in the listed stocks. The NBR imposed 10 per cent capital gains tax on foreign investors in the original budget for fiscal year (FY) 2011-12 which has been withdrawn through Sunday's SRO. Foreign investors can enjoy the tax exemption facility if they enjoy a similar one in their respective country of origin. "Any profit and gains under the head 'capital gains' arising from the transfer of stocks or shares of a company as defined in company law, 1994 listed in any stock exchange in Bangladesh of an asssessee being a non-resident, subject to the condition that such assessee is entitled to similar exemption in the country in which he is a resident," the SRO said. The NBR also issued a separate SRO on alternative dispute resolution (ADR) rules. The law on ADR law was enacted during the time of the approval of the Finance Bill and the Appropriations Bill, i.e., the passage of the national budget, for the current fiscal. Under the ADR rules, the NBR set 30 days time, on receipt of demand notice from the taxmen, by the taxpayers to submit application for resolving disputes through ADR process. Taxpayers will have to pay Tk 500 with the application for a tax year. There will be facilitators to help both taxmen and taxpayers on ADR process. Facilitators will get remuneration, which will be 10 per cent of the disputed tax amount but not below Tk 5000 and not above Tk 50,000. Both taxpayers and government or government-appointed organisation will equally share the amount to be paid as remuneration. FE: 3-12-2012 Tax rebate on stock investment Dhaka, Oct 12 (bdnews24.com) The National Board of Revenue has agreed to provide income tax rebate on stock market investment. Source tax on stock market brokerage commission will also be halved from the current 0.10 percent. Capital market regulator, Securities and Exchange Commission chairman told reporters that the revenue board had agreed to provide the exemption. "The tax rebate was there before, but was removed in this budget. NBR has agreed to revive the exemption with a few days," M Khairul Hossain said. The SEC chief's announcement comes in the face of fourth consecutive days of demonstrators by investors on Wednesday. He also announced that the tax on stockbrokers' commission would be halved to 0.05 percent from 0.10 percent. "NBR has assured us that the tax would be decreased to what it was originally," Hossain added. He added that the NBR is also evaluating on whether to decrease the tax in this budget slapped on mutual funds. "The top level of the government is anxious over the current state of the capital market. They want to see a stable market," he added, "I was asked what has to be done to stabilise it. The meeting with NBR today (Wednesday) was a step in that direction." Within half an hour into Wednesday's trade, the Dhaka index shed 141.75 points to

stand at 5,151.56 around 11.24am. This is the lowest point since Jan 21, 2010 when the index plummeted to 5,095.21. But street demonstrations and the regulator's urgent meeting seemed to have left a positive effect on the stocks. Wednesday saw the index closing 57 points up. Bdnews24: 10/12/2012