The DSE Brokers Association of Bangladesh (DBA) has submitted a set of proposals to the National Board of Revenue (NBR) for the 2026-27 fiscal year national budget, aimed at strengthening stability, increasing investment, and ensuring long‑term growth in the country’s capital market.
In a letter addressed to NBR Chairman Abdur Rahman Khan, DBA President Saiful Islam emphasized that if implemented, the proposals would enhance investor confidence and help attract both domestic and foreign capital to the market.
DBA highlighted that individual investors now face double taxation on dividend income, first through withholding tax at the source and then again when filing income tax returns, which can push the effective tax rate up to around 40.5 percent. The association proposed treating the withholding tax on dividends as the final tax liability, simplifying the tax structure and reducing this burden.
By doing so, DBA said, tax complexity would decrease and investor participation in listed companies would likely rise, supporting deeper and more resilient capital market development.
The proposals also called for removing discriminatory tax treatment in the mutual fund sector by expanding tax incentives beyond the current cap of BDT 500,000 for retail investors, which could encourage greater institutional investment.
In addition, DBA underscored that uniform tax rates should apply across all listed securities and fund units to eliminate inconsistencies that presently deter investment.
The association also recommended tax relief measures for brokerage houses, such as treating withholding tax as advance tax on turnover to better reflect actual earnings, along with incentives for investors holding negative equity accounts to return them to active participation in the market.
To broaden corporate involvement, DBA proposed establishing a “DMD‑to‑listed company” framework targeting firms that meet specific capital, turnover, or bank financing criteria, and offering policy incentives for bond issuances.
Lastly, the proposals suggested withdrawing tax advantages for inactive listed companies for example, those that have not held annual general meetings or declared dividends for three years to restore discipline and market confidence.
DBA believes that adopting these measures would ensure greater transparency, encourage long‑term investment, and generate a positive impact across Bangladesh’s capital market.