Government of Bangladesh Likely to Offer Tax Waiver in Order to Attract Investment in Sukuk 

According to officials, the Government of Bangladesh is likely to grant fiscal benefits in an effort to attract investment in Sukuk. Accordingly, the current gain tax of 4% on asset transfers to special-purpose vehicles might be waived, with Finance Minister AHM Mustafa Kamal anticipated to propose the tax waiver through the national budget for fiscal year 2021-22 on the 3rd of June 2021.

Why it Matters?

According to a senior official at Bangladesh Bank, this measure should aid in attracting investment in Sukuk. Industry insiders have noted that taxes on asset transfers are one of the primary hurdles to developing a thriving Sukuk market in the Bangladeshi corporate sector.

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