The National Board of Revenue (NBR) has taken an initiative to strengthen the stock market. They have decided to reduce the tax rate on the profit from the sale of company shares. This is expected to stabilize the stock market.
The National Board of Revenue (NBR) has set a tax rate of 15 percent on capital gains earned above Rs 50 lakh from trading of shares listed on stock exchanges. issued a notification in this regard on Monday (November 4).
It is said that in the existing law, within 5 years of the purchase of shares, if the shares are sold during the period from July 1, 2024 to June 2025 and the capital gains are earned, it is taxed at the normal rate. According to the existing law, the maximum tax rate on capital gains above 50 lakh rupees is 30 percent. But wealthy taxpayers have to pay a maximum surcharge of 35 per cent on the tax payable under the existing law. In this, capital gains earned from the stock market are subject to income tax and surcharge at a total rate of 40.50 percent as per existing laws.
According to a notification issued by the National Board of Revenue, the rate of tax on capital gains from sale of shares has been fixed at 15 percent irrespective of the period of transaction after acquisition of shares listed on the stock exchange i.e. within 5 years of purchase of shares or after 5 years. As a result, from July 1 to June 30, all shares listed on the stock exchange will be subject to 15 percent tax regardless of the amount of capital income earned above 50 million rupees, and if the taxpayer's net assets are more than 4 million rupees, 10 percent, if more than 10 million rupees, 20 percent. Surcharge at the rate of 30 percent if it is more than 20 crores and 35 percent if it is more than 50 crores.
In the case of natural person taxpayers and all other taxpayers during the period from July 1 to June 30 (tax year-2025-2026), the maximum tax rate for income tax and surcharge payable on capital gains of more than 50 lakh rupees from securities transactions of companies listed on the stock exchange is 40.50 percent. The National Board of Revenue believes that domestic and foreign investors will be interested in investing in the capital market of Bangladesh by reducing it from 20.25 percent.
