The Bangladesh government has proposed a fresh reduction of corporate tax rates levied on businesses for the third time in a row in the proposed national budget for the 2022-2023 fiscal year.
Finance Minister AHM Mustafa Kamal read out the proposals for the 2022-2023 fiscal year in parliament on Thursday.
The desired target for private investment to GDP ratio could be achieved by reducing corporate tax rate, he said.
The tax rate for publicly traded companies is currently 22.5%, which has been reduced to 20%.
The tax rate for non-publicly traded companies has been lowered to 27% from 30%.
The rate for one-person companies has been reduced from 25% to 22%.
The tax rates for publicly traded banks, insurance and financial institutions (37.5%), non-publicly traded banks, insurance and financial institutions (40%), merchant banks (37.5%), companies producing tobacco items (45%+2.5% surcharge), publicly traded mobile operators (40%), non-publicly traded mobile operators (45%), and private universities, private medical colleges, private dental colleges, private engineering colleges or private colleges solely dedicated to imparting education on ICT (15%) will stay as they are.
“The prevailing tax rate for the textile sector stands at 15%, and the SRO to this effect expires on June 30, 2022. I propose to extend this facility until June 30, 2025,” said the finance minister.