Finance Minister Amir Khosru Mahmud Chowdhury -File photo

SANGSAD BHABAN, July 12 (BSS)- Finance Minister Amir Khosru Mahmud Chowdhury today told the parliament that the government has already brought about a major transformation in the country’s capital market through wide-ranging reforms, transparent regulatory measures and strict action against those responsible for large-scale market manipulation, resulting in the gradual restoration of investors’ confidence at home and abroad. 

Replying to a supplementary question from opposition lawmaker Kamrul Hasan (Mymensingh-6) in the Jatiya Sangsad, the finance minister said the newly reconstituted Bangladesh Securities and Exchange Commission (BSEC) has begun delivering visible results, with the stock market maintaining an upward trend over the past two months. 

The day’s sitting resumed today with Speaker Hafiz Uddin Ahmad, Bir Bikram, in the chair. 

“The stock market is moving upward and has gained many points. It has witnessed stronger performance over the past two months following the appointment of the new commission. This improvement is a reflection of the return of transparency and people’s confidence in the capital market,” he said. 

The finance minister said the government has constituted a completely new BSEC comprising a chairman and three commissioners, while the process of appointing another commissioner is underway. None of the present commissioners had been appointed on political considerations, he said. 

“I would like to inform the honourable member that no one has been appointed politically. Even as the Finance Minister, I personally did not know any of them before their appointments. The selection process was so transparent that I myself was not familiar with them,” he told the House. 

Describing the qualifications of the new regulators, the minister said all the commissioners are highly experienced professionals with extensive exposure to both domestic and international capital markets.

“They are all professionals and have strong backgrounds in capital markets. There is no question regarding their honesty and integrity,” he added. 

Referring to the government’s drive against stock market manipulation during the previous regime, the minister said punitive actions have already been initiated against a number of individuals and institutions involved in irregularities and market manipulation, while proceedings against several others are currently underway. 

He said the details of the disciplinary measures already taken have been published on the BSEC website to ensure transparency and public accountability. 

The finance minister informed the House that the securities regulator has so far imposed financial penalties against individuals and organisations found responsible for manipulation, fraud and other irregularities committed during the previous government’s tenure.

He said penalties were imposed on various individuals and institutions over manipulation involving the share transactions of Bangladesh Export Import Company Limited (BEXIMCO). 

According to the minister, the commission has also been taking further actions on the basis of reports submitted by the inquiry and investigation committees formed to identify those responsible for market manipulation, corruption and other financial irregularities. 

He expressed optimism that the government’s reform initiatives would establish Bangladesh’s capital market as a transparent, accountable and internationally recognised investment destination. 

“Not only local investors have started regaining confidence, the international fund managers are once again showing interest in Bangladesh,” he said. 

The minister said investment managers from leading global financial centres, including Hong Kong, London and New York, have already started visiting Bangladesh to assess investment opportunities in the country’s capital market. 

“They are expressing interest in participating in Bangladesh’s capital market. We firmly believe that Bangladesh will build a globally recognised capital market that operates on transparency, accountability and trust,” he said. 

He added that the market’s recent upward movement itself demonstrates the growing confidence of investors in the government’s reform measures. 

Responding to another supplementary question, the finance minister said the government has simultaneously undertaken a comprehensive programme to significantly expand the country’s tax net while making the tax system simpler, fairer and more taxpayer-friendly. 

He said the National Board of Revenue (NBR) is identifying the market share of companies operating in different sectors so that taxation can be made more equitable and proportionate to each company’s actual business presence. 

“We are determining the market share of every company because tax liability should correspond to the size of its market share. This was not done properly in the past, but we are now establishing a more rational and transparent system,” he said. 

The minister said the government is also introducing a simplified flat-rate tax system aimed at bringing individuals and small businesses currently outside the tax net under formal taxation. 

Under the proposed arrangement, area-based flat tax rates will be fixed according to taxpayers’ financial capacity, allowing them to pay taxes without filing complicated tax returns or undergoing lengthy assessment procedures. 

“People will simply pay the prescribed flat-rate tax and receive a receipt. They will not have to complete tax return forms or face unnecessary harassment from tax officials,” he said. 

The finance minister said the simplified system is designed to encourage voluntary tax compliance by making it easier and less burdensome for new taxpayers to enter the formal tax system. 

“Our immediate objective is to substantially expand the tax network by bringing a large number of new taxpayers into the system through this simplified flat-rate mechanism. Once the tax base is expanded sufficiently, we will gradually implement the regular taxation framework in accordance with the country’s tax laws,” he added.