In the budget announcement today, Finance Minister AHM Mustafa Kamal stated that the government intends to keep the corporate tax rates unchanged for all sectors during the fiscal year 2023-24.
Delivering his proposal for the national budget of Tk 7.62 trillion for FY23-24 at the Jatiya Sangsad in Dhaka city, the minister highlighted the importance of maintaining the existing structure of the corporate tax rate to achieve tax GDP growth targets.
The government consistently reduced the corporate tax rate each year over the past three fiscal years, from FY2020-2021 to FY2022-23. Considering these previous adjustments, Minister Kamal emphasized the need to retain the current tax rates to bolster economic growth further.
Currently, listed companies are subject to a corporate tax rate of 20%, while non-listed companies face a rate of 27.5%. However, it is crucial to note that these rates do not apply to banks, insurance companies, non-bank financial institutions (NBFIs), telecommunication corporations, and tobacco companies.
For listed banks, insurance companies, and NBFIs, the tax rate stands at 37.5%. In contrast, non-listed firms falling within the same categories are subjected to a higher rate of 40%.
This proposal to maintain unchanged corporate tax rates comes amidst the government’s efforts to create a stable and conducive business environment while ensuring sustained economic growth.
The decision will significantly impact various sectors, as businesses will continue to operate under the existing tax structure, fostering an environment of predictability and stability.
