Corporate tax slashed by 2.5%

The government has decided to reduce the corporate tax by 2.5% for all listed and non-listed production-oriented companies, according to parliament sources.

Companies can keep Tk36 lakh cash transactions annually, which was Tk12 lakh previously.

At the same time, single transactions for the companies have been set at Tk5 lakh.

Finance Minister AHM Mustafa Kamal placed the Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad on 9 June.

According to the proposed budget, the corporate tax rate has been reduced to 20% from 22.5% for listed companies, 27.5% from 30% for non-listed companies and 22.5% from 25% for one-person companies.

In the proposed budget, the tax rate of other export-oriented companies like readymade garments has also been reduced to 12% in a bid to enhance the competitiveness of Bangladeshi products in the world market.

It will be the third time in a row that the corporate sector is going to enjoy this facility. In FY21 and FY22, the government offered corporate tax cuts to help businesses deal with pandemic-induced losses.