Finance Minister AHM Mustafa Kamal on Thursday said that the government wanted to keep corporate tax rates unchanged for the upcoming FY24 as well.
In his budget speech at the Parliament, he said that from FY21 until FY23, the corporate tax rates were reduced every year, but this year he proposed retaining the existing structure to achieve tax GDP growth targets.
Publicly traded companies that transfer shares worth more than 10% of its paid-up capital through Initial Public Offering (IPO) pay 20% corporate tax, while publicly traded companies that transfer shares worth 10% or less than 10% of its paid-up capital through IPO pay 22.5%.
Failure to comply with conditions penalizes them by paying 22.5% and 25% corporate tax, respectively.
Non-listed companies pay 27.5%, while one person companies (OPCs) pay 22.5%, and publicly traded banks, insurance and financial institutions (except merchant banks) pay 37.5%.
The International Monetary Fund (IMF) has advised the National Board of Revenue (NBR) not to cut the existing corporate-tax rates further in the budget in order to keep revenue mobilization uninterrupted.
The IMF team held two separate meetings with senior officials of the customs-VAT and income-tax wings on the NBR premises in April earlier this year, for a review of the actions being taken on its loan conditions.
In a meeting with the National Board of Revenue (NBR), the visiting delegation of the IMF also discouraged offering new tax exemptions in the budget for the upcoming FY24 to reduce tax expenditure that is eating up around 2.28% of GDP.