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Why stamp duty on mutual fund registration?

The article from TBS News discusses the implications of the stamp duty imposed on mutual fund registration in Bangladesh. It highlights how this tax, which was introduced in the Finance Act 2023, has negatively impacted the mutual fund industry by increasing the cost of registration, thereby reducing the attractiveness of mutual funds as an investment option. The duty, set at 0.15% of the fund's total value, adds a significant financial burden on Asset Management Companies (AMCs) and ultimately on investors. The article argues that this tax contradicts the government's goal of promoting capital market development and financial inclusion, as it discourages investment in mutual funds, which are crucial for mobilizing savings into productive investments. It suggests that the government should reconsider this policy to foster a more vibrant capital market, potentially by removing or reducing the stamp duty to encourage investment and support economic growth.

Read the Full tbsnews Article at:
[ https://www.tbsnews.net/thoughts/why-stamp-duty-mutual-fund-registration-1006596 ]