BANGLADESH

The National Board of Revenue (NBR) has enforced tax cuts to help stabilise the drooping capital market in the wake of street protests by retail investors.

NBR public relations officer Syed A Momen told bdnews24.com that a statutory regulatory order was issued on Monday.

The announcement came following an overnight hunger strike by the small investors who began the protests on Sunday, saying they would 'fast unto death' if the market situation does not return to normal.

On Oct 12, capital market regulator Securities and Exchanges Commission (SEC) had suggested income tax rebates on capital market investments and on mutual fund income, and halving source tax on brokerage commissions in a meeting with the NBR following raging protests by investors against the continuous slump in the capital market.

SEC chief M Khairul Hossain had said that the NBR agreed with them on the proposed tax cuts.

The NBR order said, "A 10 percent income tax rebate will be given on investments made on the capital market, debentures or mutual funds from July 1.

"The tax on the mutual fund issuer's income will also be rebated from the same date."

"The 10percent source tax on brokerage commission enforced in the current budget will also be halved."

Meanwhile, retail investors on a hunger strike since Sunday have said they will continue with their protest until the prime minister gives specific orders to prop up the tumbling share market.

The protestors, who were dispersed by Motijheel police on the street in front of the Dhaka Stock Exchange (DSE) in the morning, are now observing it at the National Press Club.

The retail investors declared their programme on Sunday after the week's trading started at 11am. SEC officials sat later in the night with the finance minister to devise an end to the slump. However, SEC chief M Khairul Hossain declined to give any details on the meeting's outcome.