Corporate tax cut by 2.5pc
DHAKA, June 3, 2021 (BSS)–Companies, both listed and non-listed, would have to pay 2.5 percent less corporate tax in the next fiscal year.
“I propose to further reduce the tax rate for companies not listed in the stock exchange to 30 percent from 32.5 percent, and the tax rate for listed companies to 22.5 percent from 25 percent for FY 2021-2022,” said Finance Minister A H M Mustafa Kamal while placing the national budget for fiscal year (FY) 2021-22 today at Jatiya Sangsad.
He informed that the existing tax rate of 32.5 percent for companies is also applicable for One Person Companies (OPCs).
“With a view to further formalize the economy and to encourage formation of One Person Companies, I propose a tax rate of 25 percent for the One Person Companies,” he added.
The finance minister said the present ratio of private investment to GDP stands at 23 percent.
The government has taken initiatives to improve this ratio, he added.
He said reduction in corporate tax rate is expected to facilitate achieving the target for private investment to GDP ratio.
In line with the ongoing trend of globalization and in light of the ongoing COVID-19 situation, revisiting the existing tax rate in Bangladesh is a demand of the time, he added.
He said a competitive tax rate coupled with the prevailing business-friendly environment will make a significant contribution towards expansion of trade and commerce and industrialization in the country.
BSS/KUC/FI/ 1620 hrs