Stocks
Proposal to be Offered to Withdraw Double Taxation on Dividends
The Planning Minister, M.A. Mannan, has stated that in order to curb the dependency on interest income in the stock market, the government is considering adjustments in the corporate tax rate for listed and non-listed companies and making all types of bond markets completely tax-free. These proposals are aimed at budgetary considerations to increase revenue and ensure a more robust and free bond market.
On Sunday, June 4th, a discussion titled “Discussion on Budget: Perspective of the Stock Market” was held, organized jointly by the Bangladesh Merchant Bankers Association (BMBA) and the Capital Market Journalist Forum (CMJF). The event saw the presence of esteemed individuals such as Professor Dr. Hafiz Muhammad Hasan Babu, Chairman of the Dhaka Stock Exchange (DSE), Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), Richard De Rosario, President of the DSE Brokers’ Association (DBA), and Md. Sayadur Rahman, President of the BMBA.
During the event, the Planning Minister emphasized that the country is on the path of economic development. Although the stock market might not have received significant attention in our country yet, its importance is gradually increasing.
He stated that it is appropriate for multinational companies to be listed on the stock market. I had expressed this view when I was the Finance Minister. However, I wonder why these companies have not been listed.
Regarding advance income tax, he mentioned that it should be abolished, just like military laws. It is advisable to repeal this law.
President of the Bangladesh Merchant Bankers’ Association (BMBA), Mr. Sayadur Rahman, stated that the country’s economy is progressing. However, he emphasized that economic stability cannot solely rely on banking. The stock market should play a crucial role in long-term investment.
He proposed that both listed and non-listed companies should be subject to a 15% tax on profits. The dual tax system needs to be abolished, considering the tax as a final charge on dividend income sources. By removing the dual tax system, it will encourage long-term investment by taxing only the company’s income.
Richard De Rosario, President of the Dhaka Stock Exchange Brokers’ Association (DBA), expressed the need to focus on small-scale companies in the country and foster new entrepreneurs. In this regard, the stock market can play a vital role. The absence of significant measures related to the stock market in the budget is deeply disappointing.
In his claim to increase the tax on profits, he stated that listed companies have responsibilities in various aspects. They must be accountable in stock exchanges, the Bangladesh Securities and Exchange Commission (BSEC), and many other areas. Being listed improves transparency. As a result, many companies that are currently reluctant to be listed will eventually choose to do so, benefiting the government.
Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), stated that a significant portion of the country’s industrial investment has been channeled through banks so far. However, it would have been more appropriate if it had been done through the stock market. Unless a space for long-term investment is created through the stock market, the country’s economy can never achieve stability. Additionally, the importance of the bond market needs to be enhanced for long-term investments. In this regard, all types of bonds should be made tax-free, similar to zero-coupon bonds.
Dr. Hafiz M. Hasan Babu, Chairman of the BSEC, stated that in major economies around the world, the stock market is considered a key driving force for the economy. However, in our country, it is being neglected. There is negligence towards the stock market. I firmly believe that neglecting the stock market will not be possible, and it will continue to exist. Because it involves the people at the grassroots level of the country, and it holds the future of the economy.
CMJF President Ziaur Rahman presided over the program moderated by CMJF General Secretary Abu Ali.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
