Corporate taxes to be slashed in new budget
To increase the ratio of private investment to GDP, Finance Minister AHM Mustafa Kamal today recommended a slew of reductions to the current corporate tax rates.
He proposed reducing the tax rate for companies not listed in the stock exchange to 30% from 32.5%, and the tax rate for listed companies to 22.5% from 25% for FY2021-22.
While placing the proposed budget for the next fiscal year, the finance minister mentioned that the current private investment to GDP ratio of 23% could be improved upon to achieve the target ratio. "In line with the ongoing trend of globalisation and in light of the ongoing Covid-19 situation, revisiting the existing tax rate in Bangladesh is a demand of the time," he said.
Saying that the current tax rate of 32.5% was also applicable for One Person Companies (OPCs), he suggested bringing it down to 25% to "formalise the economy and to encourage" formation of OPCs.
"A competitive tax rate, coupled with the prevailing business-friendly environment, will make a significant contribution towards expansion of trade and commerce and industrialisation in the country," he said in his address.