Parliament has approved a supplementary budget of Tk 139.87 billion to authorise additional expenditures by ministries and divisions for the current fiscal year ending Jun 30.
Bangladesh companies to enjoy deep tax cuts in the year ahead
Finance Minister AHM Mustafa Kamal has recommended a host of cuts to the current corporate tax rates in the proposed budget for fiscal 2021-22.
Published : 3 June 2021, 10:24 AM
Updated : 3 June 2021, 12:10 PM
In an effort to boost the ratio of private investment to GDP and ‘to pave the way for the rapid growth of trade and commerce’, Kamal proposed a reduction of tax for non-listed companies to 30 percent from 32.5 percent and the rate for listed companies to 22.5 percent from 25 percent for FY22.
“The present ratio of private investment to GDP stands at 23 percent. The government has taken initiatives to improve this ratio. Reduction in corporate tax rate is expected to facilitate achieving the target for private investment to GDP ratio,” Kamal said.
“In line with the ongoing trend of globalisation and in light of the ongoing COVID-19 situation, revisiting the existing tax rate in Bangladesh is a demand of the time.
“A competitive tax rate coupled with the prevailing business-friendly environment will make a significant contribution towards the expansion of trade and commerce and industrialization in the country.”
The current 32.5 percent tax rate was also applicable for One Person Companies or OPCs, Kamal pointed out.
With an aim to ‘formalise the economy and to encourage formation’ of One Person Companies’, Kamal suggested bringing down the tax rate for the OPCs to 25 percent
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