Govt proposes 2.5 percentage point cut in corporate tax

The government has proposed a corporate tax cut in order to encourage investment and create more job opportunities.

Finance Minister AHM Mustafa Kamal said this while unveiling a Tk 6.78 trillion national budget on Thursday.

In line with previous budgets, the minister proposed a 2.5 percentage point cut that would put the rate at 27.5 percent in the coming fiscal year.

He said: “The reduction in the tax, one of the major costs of doing business, will encourage investment and create more job opportunities.”

Bangladesh previously cut the corporate tax rate by 2.5 percentage points in each of the two previous fiscal years, lowering it from 35 percent to 30 percent. Now it will drop to 27.5 percent.

The rate will apply to all companies unlisted on the share market, while the rate for listed companies will be lowered to 22.5 percent.