Monday, October 21, 2019 | ePaper
Stocks rebound on tax review hope
Stocks rebounded on Wednesday, after remaining flat in the past few sessions, as investors showed their buying appetite on budget review expectations.
The market opened on positive note and the upturn continued until end of the session with no sign of reversal.
At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 29.73 points or 0.55 per cent to finish at 5,410.
Market insiders said tax review expectations coupled with June closing year-end earnings and dividend declarations prompted investors to inject fresh funds on stocks.
The Finance Minister AHM Mustafa Kamal proposed, among other, imposition of 15 per cent additional tax on retained earnings and reserves, if the amount exceeds 50 per cent of the paid-up capital of the company.
The minister also proposed imposition of 15 per cent tax on stock dividend to promote cash dividend as part of efforts to increase money flow into the stock market.
In the wake of strong criticism from market stakeholders, the National Board of Revenue (NBR) chairman hinted at the possibility of reviewing the proposals announced in the budget for fiscal year (FY) 2019-20.