The finance bill passed in Parliament yesterday for the fiscal year 2015-16 has reduced tax rate on profits made by the newly launched banks.
The government lowered the corporate tax to 40% from 42.5% for nine local banks approved in 2013 to run business.
The banks known as fourth generation banks include NRB Commercial Bank, SBAC Bank, Meghna Bank, Midland Bank, The Farmers Bank, Union Bank, NRB Bank, NRB Global Bank and Modhumoti Bank. As per the Bangladesh Bank rules, the banks will not allowed to be listed with the stock market till 2016.
Although the government has cut corporate tax of the listed companies to 40%, the provision remains unchanged in the proposed budget for the non-listed firms.
Like other local banks listed with the stock market, the new banks will enjoy the tax reduction, the finance bill says.
