The minister proposed lowering the tax rate for unlisted companies from 32.5% to 30%.
Finance Minister AHM Mustafa Kamal has proposed lowering the existing corporate tax rates in order to achieve the goal of private investment in relation to GDP (gross domestic product).
The minister proposed lowering the tax rate for unlisted companies from 32.5% to 30% and the tax rate for listed companies from 25% to 22.5% for the fiscal year 2021-2022.
“The ratio of private investment to GDP is currently 23%. The government has taken initiatives to improve this ratio,” said Kamal when he presented the budget to parliament on Thursday.
“In line with the ongoing globalization trend and in view of the ongoing Covid-19 situation, a review of the existing tax rate in Bangladesh is a requirement of the times,” he said.
The previous tax rate of 32.5% for companies also applies to one-person companies (OPCs), he said.
To further formalize the economy and encourage the formation of OPCs, the minister proposed a tax rate of 25% for one-person businesses.
“A competitive tax rate coupled with the prevailing business-friendly environment will go a long way toward expanding trade and industrializing the country,” he added.