DHAKA, June 11, 2020 (BSS) – Non-listed companies would have to pay 2.5 percent less corporate tax in next fiscal year.
“To ease the tax burden of valued taxpayers at this critical time of the Covid-19 pandemic, I propose a 2.5 percent reduction in the tax rate of non-publicly traded companies to fix it at 32.5 percent from that of 35 percent,” said finance minister A H M Mustafa Kamal while placing the national budget for fiscal year (FY) 2020-21 today at Jatiya Sangsad.
Except for banks, leasing and insurance companies, mobile phone companies and cigarette manufacturers, tax rates for publicly traded companies and non-publicly traded companies have remained 25 percent and 35 percent respectively since FY 2014-15.
Bank and financial institutions have long been demanding for reducing corporate tax to 32 percent from existing 37.5 percent.
At present, readymade garments (RMG) factories having green building certification enjoy a special tax rate of 10 percent, whereas RMG factories without such certification pay taxes at a rate of 12 percent.
The deadline of the SRO providing this special tax rate ends on June 30, 2020.
The finance minister proposed to extend the time-limit of the said SRO by another two years.
“I hope our taxpayers in the RMG sector will be greatly benefitted from this tax rate reduction,” he added.