The rate of corporate income tax was proposed to be reduced only for the non-listed companies, while the rest was proposed to be remained unchanged in the upcoming fiscal year.
In his budget speech for the fiscal year 2014-15, Finance Minister AMA Muhith proposed to reduce tax rate for the non-listed companies from the existing 37.5% to 35% and keep the rates for other companies unchanged.
The government also proposed reducing the minimum tax on any company’s gross receipts from existing 0.50% to 0.30%. Currently, any company having gross receipts of more than Tk50 lakh, irrespective of its profits or loss, has to pay minimum tax at the rate of 0.50%.
The National Board of Revenue is set to collect Tk149,720 crore revenue in the fiscal year, while the target for the total income tax was proposed at Tk57,500 crore, of which corporate tax will contribute Tk31,120 crore.
Currently, banks and financial institutions are paying 42.5% corporate tax, while it is 27.5% for publicly traded companies, 37.5% for non-publicly traded companies, and 37.5% for merchant banks. For the publicly traded mobile companies, the tax rate is 40% while it is 45% for the non-publicly traded operators. For the publicly traded cigarette manufacturers, the tax rate is 40%, while it is 45% for the non-publicly traded manufacturers.
