The government has taken the initiative to reduce the corporate tax for banks and Financial institutions (FIs) to bring the lending rate in single digit for accelerating further the country’s economic activities.
The observation came from the post-budget press conference with Finance Minister AMA Muhith in the chair at Osmani Memorial Auditorium in the city.
Agricultural Minister Matia Chowdhury, Planning Minister AHM Mustafa Kamal, Information Minister Hasanul Haq Inu, State Minister for Finance and Planning MA Mannan, Economic Affairs Adviser to the Prime Minister Dr. Mashiur Rahman, Power, Energy and Mineral Resources Affairs Adviser to the Prime Minister Dr. Tawfiq-e-Elahi Chowdhury, Finance Secretary Mohammad Muslim Chowdhury, National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan, Economic Relations Division Secretary Shofiqur Rahman and Bangladesh Bank Governor Fazle Kabir were present at the press conference. AMA Muhith has proposed to reduce the corporate tax rate for banks and Financial Institutions (FIs) by 2.5 percent in the national budget for upcoming fiscal 2018-19 unveiled in parliament on Thursday. The existing rate is 40 percent.
Mustafa Kamal said the aim of the government is to bring the lending rate to single digit. “If the lending rate comes down to single digit, investment in the country will accelerate further,” he added.
Moreover, he said, most of the banks and FIs are listed companies, that’s why, the benefits of the corporate tax will go to the shareholders.
Responding to a question, the planning minister said, every developing country has some discrimination, but in Bangladesh, the rate of discrimination is lower than the other developing countries.
Kamal said the government is providing all sorts of policy supports to increase inflow of remittance as the sector is a major sector for the country’s development.
Hasanul Haq Inu said the government has been keeping special allocation for the poor, women and backward people of society in the budget for the last 10 years as the main objective of the government is to alleviate poverty.
“The government is working for increasing the social protection. The main target of the government is to achieve inclusive growth,” he added.
Mashiur Rahman said the implementation of the development projects will increase the flow of both foreign and domestic investments.