Proposed tax on retained earnings may go: PM’s adviser

The proposed tax on the retained earnings of a company may be withdrawn following businessmen’s demand.

“We are working at it,” said Salman F Rahman, prime minister’s adviser on private sector development, while replying to a question on Monday at the dissemination of ‘World Investment Report 2019’ in Dhaka.

Finance Minister AHM Mustafa Kamal has proposed to impose an additional 15 percent tax on the retained earnings and reserves of a company as it exceeds 50 percent of the paid-up capital.

Businessmen demanded the withdrawal of this provision terming it “double-taxation”.

Rahman also acknowledged that and said: “Yes, it’s double taxation since taxes are already paid. It’s also retrospective tax.”

“This has been pointed out and we are working at it. I think this will not be there when the budget is passed.”

Principal Coordinator (SDG) of Prime Minister's Office Md Abul Kalam Azad, Bangladesh Investment Development Authority Executive Chairman Kazi M Aminul Islam, and FBCCI President Sheikh Fahim also spoke at the event.

Executive Director of the Policy Research Institute Ahsan H Mansur presented the global investment report including Bangladesh that witnessed a rise in investments in recent years despite a global fall.