DSE welcomes economic development plan budget

Fiscal reactions

The Dhaka Stock Exchange (DSE) hailed the draft budget for the financial year 2022-23 as a “far-reaching plan” for the country’s overall economic development.

Finance Minister AHM Mustafa Kamal on Thursday unveiled the national budget worth Tk 6.78 trillion for FY23.

The main stock exchange expressed its gratitude to Prime Minister Sheikh Hasina and the Minister of Finance, as the draft budget pays special attention to controlling inflation and developing the sectors of agriculture, health, human resources and education.

The DSE appreciated the initiatives proposed to stimulate investment, create jobs and return to the path of development – leaving behind the impact of the Covid-19 pandemic.

The proposed budget was discussed at a meeting of the DSE board – shortly after it was unveiled on Thursday evening.

In his budget speech, the finance minister also unveiled a plan for utilizing the economic potential of the Padma Bridge, which is the manifestation of a far-reaching plan for the comprehensive economic development of the country, according to a press release. of the main stock exchange.

The DSE commended the budget proposal for the well-planned development planning and formulation of the strategy for mobilizing the economy through development and manufacturing activities.

The budget proposed to cut corporation tax for listed companies from 2.5% to 20% that issued shares worth more than 10% of their paid-up capital through an initial public offering. savings (IPO).

“It will attract large, reputable companies to be listed on the capital market,” the DSE statement said.

The tax rate would be 22.5% for listed companies that issue shares representing 10% or less than 10% of their paid-up capital, which would ensure sustainable development of the capital market.

The DSE welcomed certain measures taken in the budget, in particular a particular emphasis on the development, expansion and modernization of the capital market.

The stock exchange believed that the government’s positive attitude towards the market would enable it to play a more effective role in accelerating the pace of industrialization in the country.

“The government is taking and implementing various reform measures to internationalize the capital market.”

To bring the country’s stock market to an international level, the government is working to introduce various instruments into the market, such as treasury bills, Sukuk, derivatives, alternative trading tips and ETFs, in accordance with the investor expectations.

The DSE further commended the Minister of Finance for upholding last year’s market-friendly policies in the proposed budget to make the exchange profitable.

The capital market is the main source of long-term financing for the country’s development. Therefore, through the proposed budget, the market can help the government achieve its desired goals, the exchange said.

[email protected]