Despite some significant positive changes in the proposed budget, foreign investors in Bangladesh still have major concerns about the effective income tax rate, which exceeds 40% in some cases, leaders of the Foreign Investors Chamber of Commerce and Industry (FICCI) said. “Despite the decrease in the corporate tax rate, the effective tax rate here in … Read more
The chairman of the National Board of Revenue has questioned tax exemptions for publicly traded companies, asking if the facilities really helped the capital market grow. Abu Hena Md Rahmatul Muneem answered questions on cutting the spread between corporate taxes of publicly traded and non-listed companies from 7.5 percentage points to 5 points in the … Read more
Tax rates for publicly-listed companies may remain unchanged in the upcoming fiscal year, with some changes in parlance that could affect the availing of lower tax rates. The base rate may see a rise for publicly listed companies, but compliance with cashless transactions could bring it back down to existing rates. Listed companies with free float up to 10% and above with cashless transactions would have tax rates of 20% and 22.5%. Noncompliance with the cashless transaction limit would result in higher tax rates. The government may also impose capital-gain taxes on individual investors for the first time if profits exceed Tk 4.0 million. The tax gap between listed and non-listed companies may be reduced by cutting corporate tax rates for non-listed companies by 2.5%. Capital-market experts believe that higher taxes and reducing the tax gap between listed and non-listed companies could discourage companies from entering the capital market. The government should focus on simplifying investment procedures rather than increasing taxes on the capital market.
Fact: Companies listed on the capital market are expected to face an additional 2.5% corporate tax in the next fiscal year unless they adopt cashless transactions as the government plans to promote a cashless society.
The government plans to reduce corporate tax rates in the productive sector by 2.5 percent in the upcoming fiscal year 2024-25 to encourage setting up of industries and increase tax payments.
Fact: Prime Minister Sheikh Hasina directed the National Board of Revenue (NBR) not to increase taxes on food, agro-related items, and fertilizers in the upcoming budget.