The National Board of Revenue (NBR) has reduced the tax rate to 15 percent on capital gains above Taka 50 lakh from selling shares of listed companies on the stock exchanges for encouraging investment in capital market.
Previously, taxpayers had to pay 30 percent tax on the capital gains over Taka 50 lakh if the gains are realised in five years at any time of a year. In case of sales of shares after years of purchase, the rate of tax on capital gains would be 15 percent.
This information was disclosed in a press release published by the NBR on Monday.
Following the relaxation, the tax rate on capital gains would be 15 percent regardless of the amount of gains and the time of sales.
As a result of the reduction in the rate of tax on capital gains, overall tax burden on taxpayers with over Taka 50 crore would fall to 20.25 percent from 40.5 percent earlier. Taxpayers with lower wealth will also see their overall tax burden to drop in line with the rate of surcharge on net wealth.
Source: BSS