CTG, JUNE 10, 2008: Chittagong Stock Exchange (CSE) today (Tuesday) hailed the proposed budget for the 2008-09 fiscal saying the incentives proposed in the budget will contribute towards industrialization and consequent growth in securities market.

“The Government’s decision to off-load its shares in 21 more SOEs in power, industries and telecommunications sectors in the capital market would, in addition to contributing towards employment generation and industrialization in the country, boost up country’s capital market through mitigating the nagging demand for quality shares in the stock market,” CSE President Mr Nasir Uddin Ahmed Chowdhury said in the formal reaction to the budget. He also requested the Government to hasten the off-loading procedure by passing necessary administrative orders.

Welcoming the proposed budget Mr. Chowdhury hoped that introduction of Book Building System in the primary stock market will be able to attract the private companies having strong capital foundation to come up with big issues for public sector.

The CSE President also hailed the Finance Adviser’s for his bold steps in recognizing greater importance of SME sector and increasing the fund allocation for this sector. The CSE President also welcomed allocation of Tk. 300 crore Fund for Climate Change and tax incentives for women, senior citizens and farmers. He thanked the Finance Advisor for rescinding of Section 16 CC of Income Tax Ordinance under which all companies, irrespective of making profits or losses, had to pay a minimum tax and said that through this step, a distortion of our tax law has been removed.

Thanking the Government for reducing tax rates Mr. Chowdhury said, “Slashing tax rate of both listed and non-listed companies by 2.5% would highly encourage the corporate sector especially under current worldwide economic recession and increased energy cost”.

Recalling restructuring of the duty structure in four-tiers, the CSE president said,” it would be more realistic and friendly for industrialization”. He also thanked the Government for keeping Agricultural Farms and manufacturing SMEs outside the purview of tax and withdrawal of 15% VAT on importation of MS bar and rod upto 30th June 20011. Mr. Chowdhury also welcomed Finance Advisor’s proposal for allowing Textile and Jute Industries a discounted tax rate of 15% upto 30th June, 2011 and hoped that it would contribute towards growth in industrialization as well as country’s GDP.

CSE President also appreciated of the role of SEC Chairman for early injecting of Govt stakes in share market and his recent urging for Merchant Banks to bring new scripts to Share Market.

AKM Shahroze Alam
Deputy Manager Corporate Development