The government is planning to keep the existing corporate tax rates for the next fiscal 2019-20 to boost business and investment in the country.
This was revealed on Thursday in the proposed budget placed in parliament by finance minister AHM Mustafa Kamal.“Currently multiple corporate tax rates are in existence for different corporate sectors. For publicly traded company, tax rate in Bangladesh is 25 percent and for publicly non-traded company tax rate is 35 percent,” the finance minister’s budget speech read.
Besides, a good number of corporate sectors are enjoying reduced tax rates and tax exemptions, the budget speech read.
As per the budget speech, “When these facts are taken into consideration, we find the effective corporate tax rate in Bangladesh is below 5 percent. In addition, the tax rate for banks and financial institutions was reduced by 2.5 percent from last year, which resulted in significant reduction of tax collection from this sector.”
Considering the facts, the government proposed to continue with the existing corporate tax rate structure for the next year.
The government also proposed in view of reality, the government proposed to raise the minimum tax for mobile companies to 2 percent of their turnover from 0.75 percent.