Govt lowers corporate tax to 12% for non-RMG sectors

In the budget for FY2022-23, the government has proposed to introduce a 12% corporate tax for all export sectors – the same rate as the readymade garment industry is now enjoying – with a view to encouraging export diversification.

"The prevailing tax rate for the export oriented RMG sector stands at 12% for general factories and 10% for green factories. With a view to encouraging diversification of export goods and ensuring a level playing field for all other sectors exporting goods and services, I propose to introduce 12% tax rate for all other general industries exporting goods and services and 10% for all other green industries exporting goods and services," Finance Minister AHM Mustafa Kamal said while placing the budget at the parliament today.  

He further said, "These rates will not be applicable for transport service, mobile telecommunication service and internet and internet related services. This sort of export-friendly initiative will bring down trade deficit with other countries. As a result, the deficit in balance of payment in foreign currency will be minimized."

The finance minister has placed the Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad according top priority to safeguarding marginal people from inflation fuelled by the Russia-Ukraine conflict.

This is the fourth budget of the third consecutive term of the government led by Prime Minister Sheikh Hasina and also the overall 51st budget of the country.

The proposed budget is Tk74,383 crore higher than the original budget size of the FY2021-22 fiscal year, which was Tk6,03,681 crore.