AIT Capital

The upcoming national budget for FY2025-26 in Bangladesh is anticipated to introduce significant tax breaks aimed at revitalizing the struggling capital market. Key proposals include widening the corporate tax gap between listed and non-listed firms, reducing advance income tax on securities trading, and lowering the corporate tax rate for merchant banks. These measures are expected to enhance investor confidence and stimulate market transactions. However, some critics argue that the benefits may primarily favor brokerage firms and merchant banks rather than general investors, emphasizing the need for better legal enforcement in the capital market.

The upcoming national budget for FY2025-26 in Bangladesh is anticipated to introduce significant tax breaks aimed at revitalizing the struggling capital market. Key proposals include widening the corporate tax gap between listed and non-listed firms, reducing advance income tax on securities trading, and lowering the corporate tax rate for merchant banks. These measures are expected to enhance investor confidence and stimulate market transactions. However, some critics argue that the benefits may primarily favor brokerage firms and merchant banks rather than general investors, emphasizing the need for better legal enforcement in the capital market.