The government has decided to provide policy support in building a strong bond market as an alternative to banks for sourcing long term finance to entrepreneurs

Finance Minister AHM Mustafa Kamal has proposed a tax exemption on the applicable capital gains tax at the time of transferring property either to a trust or Special Purpose Vehicle or transferring property by a trust or Special Purpose Vehicle.

Kamal said in his budget speech that the government has decided to provide policy support in building a strong bond market as an alternative to banks for sourcing long term finance to entrepreneurs.

“I propose tax exemption on capital gains to popularize and create a strong market for Sukuk or Islamic bonds,” he said.

This will facilitate collecting long-term capital and reduce bank dependency, the minister further said in his budget speech.

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