Finance Minister AMA Muhith has kept the corporate tax rate unchanged, except for banks and financial institutions, for which he proposed a reduction of 2.5 percent from the existing 40 percent.
“We will lose a certain amount of tax revenue from such rationalisation of corporate tax rate; however, this will give a positive signal to our investors. I also propose that corporate tax rates for other companies remain unchanged,” he said in his budget speech.
With this proposed rate, the highest corporate tax rate will be mostly 40 percent, and next highest rate will be 37.5 percent, except for tobacco manufacturers and non-listed mobile phone operators, which will be taxed at 45 percent.
“It is often argued that the corporate tax rate in Bangladesh is high. This is not correct. Corporate tax for publicly traded company in Bangladesh is 25 percent, which is lower than many countries in South Asia and very compatible with global average (24.29 percent),” said the minister.