New Budget Proposed to Reduce Corporate Taxes

Finance Minister AHM Mustafa Kamal today proposed a slew of corporate tax rate reductions to boost the ratio of private investment to GDP.

For FY 2021-2022, he recommended lowering the tax rate for non-listed corporations to 30 percent from 32.5 percent, and the tax rate for listed corporations to 22.5 percent from 25 percent.

The finance minister stated in his new budget that the existing private investment to GDP ratio of 23 percent may be enhanced to meet the target ratio. "Revising the existing tax rate in Bangladesh is a demand of the time," he said, citing the continued globalization trend and the current Covid-19 situation.

He suggested lowering the current tax rate of 32.5 percent to 25 percent to "formalize the economy and to encourage" the development of One Person Companies (OPCs).

"A competitive tax rate, together with the current business-friendly environment, would make a substantial contribution to the country's expansion of trade and commerce and industrialization," he added in his speech.