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.
