AIT Capital

The upcoming national budget for FY2025-26 in Bangladesh is expected to introduce significant tax relief measures aimed at revitalizing the struggling capital market. Key proposals include widening the corporate tax gap between listed and non-listed companies to 7.5%, reducing advance income tax (AIT) on securities trading from 0.05% to 0.03%, and lowering the corporate tax rate for merchant banks from 37.5% to 27.5%. These measures aim to restore investor confidence and stimulate market transactions, although some experts express concerns that benefits may primarily favor brokerage firms rather than general investors.

The upcoming national budget for FY2025-26 in Bangladesh is expected to introduce significant tax relief measures aimed at revitalizing the struggling capital market. Key proposals include widening the corporate tax gap between listed and non-listed companies to 7.5%, reducing advance income tax (AIT) on securities trading from 0.05% to 0.03%, and lowering the corporate tax rate for merchant banks from 37.5% to 27.5%. These measures aim to restore investor confidence and stimulate market transactions, although some experts express concerns that benefits may primarily favor brokerage firms rather than general investors.