ZCZC
BSS-14
BUDGET-CORPORATE-TAX
Corporate tax slashed by 2.5pc for banks, FIs
DHAKA, June 7, 2018 (BSS) – The government will reduce the corporate tax
rate for banks and Financial Institutions (FIs) by 2.5 percent in the next
fiscal 2018-19 (FY19).
Finance minister AMA Muhith made the proposal today while placing the
national budget in the Jatiya Sangsad.
“It is often argued that the corporate tax rate in Bangladesh is high.
This is not correct. Corporate tax for publicly traded company in Bangladesh
is 25 percent, which is lower than many countries in South Asia and very
compatible with global average (24.29 percent),” Muhith said in his budget
speech.
However, he said, tax rates for banks and financial institutions are a bit
higher than other corporate sector.
“Therefore, I propose to reduce the tax rate for banks and financial
institutions by 2.5 percent,” he added.
He said “We will lose a certain amount of tax revenue from such
rationalization of corporate tax rate; however, this will give a positive
signal to our investors.”
He also proposed that corporate tax rates for other companies remain
unchanged.
“With this proposed rate, our highest corporate tax rate will be mostly 40
percent and next highest rate will be 37.5 percent, except for tobacco
manufacturers and non-listed mobile phone operators,” he added.
BSS/KUC/SA/ 1415 HRS