Stocks
Black Money Can Be Legally Invested in Capital Markets: Budget 2024-25
Finance Minister Abul Hasan Mahmood Ali has introduced the proposed national budget for the fiscal year 2024-25, which includes a provision allowing investment of undeclared money, or “black money,” into the capital markets without any questions asked. This initiative aims to bolster investment activity and liquidity in the stock market.
During the budget presentation on Thursday in the National Parliament, presided over by Speaker Shirin Sharmin Chaudhury and in the presence of Prime Minister Sheikh Hasina, the Finance Minister outlined this proposal as a part of the broader budgetary framework.
Key Proposals for the Capital Market
Investment of Undeclared Money: The budget proposes that individuals can invest undeclared money into the stock market without facing any inquiries. This measure is expected to attract more capital into the market, potentially enhancing market stability and growth.
Capital Gains Tax on Share Sales: Investors making profits from share sales will now be subject to taxes if the profit exceeds Tk 50 lakh. A 15% tax on capital gains over this threshold has been proposed. This aims to ensure a fair contribution from high-earning investors to the national revenue.
Historical Tax Exemptions: Previously, in 2015, investors were granted tax exemptions on profits from the sale of stocks, mutual funds, bonds, and debentures. These exemptions were part of efforts to stimulate investment and trading activities in the capital markets.
Increased Tax for Sponsors and Directors: The proposed budget increases the tax rate on capital gains from share transfers for sponsors and directors of listed companies from 5% to 10%. This move is intended to enhance tax revenues from high-value transactions and ensure equity in the tax system.
Exemptions for Family Transfers: No tax will be imposed on the transfer of shares between parents and children or between spouses when such transfers are made as gifts. This provision supports familial financial planning without additional tax burdens.
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
