The government has reduced income tax on investments in an effort to stabilise the stock market.
The cabinet cleared a proposal in this regard in a meeting chaired by prime minister Sheikh Hasina on Monday.
Her press secretary Abul Kalam Azad said the change was made to make the capital market dynamic and bring investors' confidence back in the market.
The amendment proposes cutting taxes on mutual fund investment income. Also, the 10 percent tax on foreign investors' profit would be removed.
Tax on source on brokerage house commissions is proposed to be reduced to 0.05 percent from 0.1 percent.
Azad also said, "We know the capital market is risky. It is inappropriate for those in government service to be in this business."
Then he said, "Later the ministry will issue a paper on the matter."
The comments created confusion as to whether the government was trying to prevent state officials from investing.
Later Azad told that his remarks about the government officials and employees investing in the market were 'off the record' and it was a misunderstanding with the journalists.
The law in force stipulates that public servants cannot be involved with any other profitable ventures, but they have been investing in the capital market, thanks to legal loopholes.
The Khondoker Ibrahim Khaled-led panel formed to investigate last Dec-Jan crash in the market had also proposed shutting the door on the opportunity for government officials to put their money into stocks.
TRAFICKING LAW APPROVED
The cabinet meeting also approved anti-human trafficking law with capital punishment as the highest penalty.
The draft law was approved earlier on Dec 12 last year in the cabinet and was brought there again on Monday for some additions and corrections.
WAGE COMMISSION PROPOSAL CLEARED
The cabinet also gave final approval to the proposals of National Wages and Productivity Commission-2010.
The proposal fixes workers' pay in state-owned institutions from Tk 4,175 to 5,600.
A Tk 700 medical allowance is also proposed, as well as Tk 100 tiffin allowance and a transport allowance of Tk 150 for them.
The commission was formed in Oct 19, 2010 with former secretary Mahe Alam as its head.
The cabinet cleared a proposal in this regard in a meeting chaired by prime minister Sheikh Hasina on Monday.
Her press secretary Abul Kalam Azad said the change was made to make the capital market dynamic and bring investors' confidence back in the market.
The amendment proposes cutting taxes on mutual fund investment income. Also, the 10 percent tax on foreign investors' profit would be removed.
Tax on source on brokerage house commissions is proposed to be reduced to 0.05 percent from 0.1 percent.
Azad also said, "We know the capital market is risky. It is inappropriate for those in government service to be in this business."
Then he said, "Later the ministry will issue a paper on the matter."
The comments created confusion as to whether the government was trying to prevent state officials from investing.
Later Azad told that his remarks about the government officials and employees investing in the market were 'off the record' and it was a misunderstanding with the journalists.
The law in force stipulates that public servants cannot be involved with any other profitable ventures, but they have been investing in the capital market, thanks to legal loopholes.
The Khondoker Ibrahim Khaled-led panel formed to investigate last Dec-Jan crash in the market had also proposed shutting the door on the opportunity for government officials to put their money into stocks.
TRAFICKING LAW APPROVED
The cabinet meeting also approved anti-human trafficking law with capital punishment as the highest penalty.
The draft law was approved earlier on Dec 12 last year in the cabinet and was brought there again on Monday for some additions and corrections.
WAGE COMMISSION PROPOSAL CLEARED
The cabinet also gave final approval to the proposals of National Wages and Productivity Commission-2010.
The proposal fixes workers' pay in state-owned institutions from Tk 4,175 to 5,600.
A Tk 700 medical allowance is also proposed, as well as Tk 100 tiffin allowance and a transport allowance of Tk 150 for them.
The commission was formed in Oct 19, 2010 with former secretary Mahe Alam as its head.
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