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Budget proposes cut in corporate tax


Published : 03 Jun 2021 10:44 PM | Updated : 04 Jun 2021 02:44 AM

Finance Minister AHM Mustafa Kamal has proposed to reduce corporate tax in the budget for fiscal year 2021-2022.

The tax rate for companies not listed in the stock exchange will be 30 per cent from 32.5 percent and the tax rate for listed companies will be 22.5 percent from 25 percent for FY 2021-2022, he said while placing the national budget in the Jatiya Sagsad (national Parliament) on Thursday.  

The minister said, “The existing tax rate of 32.5 per cent for companies is also applicable for One Person Companies (OPCs).”

With a view to formalizing the economy further and encouraging formation of One Person Companies, he proposed a tax rate of 25 percent for the One Person Companies.

Tax rate for publicly traded bank, insurance and financial institution, except merchant bank, has been kept unchanged at 37.5 percent. He also proposed to keep the tax rate at 40 per cent for non-publicly traded bank, insurance and financial institution.

Tax rate for all sorts of tobacco including cigarette, Bidi, chewing tobacco, Gul manufacturing company will be 45 per cent + 2.5 per cent (surcharge).

Tax rate for publicly traded mobile operator company will remain unchanged at 40 per cent while non-publicly traded mobile operator company has also been kept unchanged at 45 per cent.

Tax rate for publicly traded provider of mobile financial service (MFS) has been increased to 37.5 per cent from existing 32.5 percent. Non-publicly traded provider of mobile financial service (MFS) hiked to 40 percent from existing 32.5 per cent.

Tax rate for association of persons has been reduced to 30 per cent from existing 32.5 per cent.

Private university, private medical, dental and engineering college or private college solely dedicated to imparting education on ICT will remain the same at 15 percent fixed by SRO earlier.