Capital gain tax on stock trading unlikely: BSEC chairman

The capital gain tax will unlikely to be imposed on stocks trading, said Prof Shibli Rubayat-Ul Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Almost every year the International Monetary Fund prescribes several steps where an advice on the imposition of capital gain tax always remains common, he said.

But it is not possible to impose such gain tax in Bangladesh's perspective, he said today.

The National Board of Revenue has ensured that the capital gain tax will not be imposed on the capital market, Islam said.

He made the comments when CMJF leaders led by its president, Golam Samdani, and secretary general, Abu Ali, met BSEC chairman at his office in the capital, according to a statement of the forum.

Prof Shibli said taking responsibility for the rise and fall of the stock market index is not the role of the BSEC.

Moreover, bringing companies to the stock market is not also its duty, he said.

"But I have received criticism for doing these, which I have done for the development of the market."

Stock exchanges should look after these issues, he said.

The developed countries are growing depending on developed bond markets, which Bangladesh should also follow, the BSEC chairman said.

"So, the BSEC is focusing on the development of the bond market."

The government will also be able to bear its development costs by issuing bonds, he added.

He proposed that Biman Bangladesh Airlines should issue bond to purchase planes instead of waiting for government funds.

Locals and foreigners will subscribe the bond, which will enable the airliner to buy the planes, he added.