Budget FY23: Corporate tax further reduced

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The government of Bangladesh has proposed a further reduction in corporate tax rates levied on businesses for the third consecutive time in the draft national budget for the financial year 2022-2023.

Finance Minister AHM Mustafa Kamal read the proposals for the 2022-2023 fiscal year to Parliament on Thursday.

The desired target for the private investment-to-GDP ratio could be achieved by reducing the corporate tax rate, he said.

The tax rate for listed companies is currently 22.5%, it has been reduced to 20%.

The tax rate for non-listed companies has been lowered to 27% from 30%.

The rate for sole proprietorships has been reduced from 25% to 22%.

Tax rates for listed banks, insurance companies and financial institutions (37.5%), unlisted banks, insurance companies and financial institutions (40%), investment banks (37.5%), companies producing tobacco articles (45% + 2.5% surcharge), listed mobile operators (40%), non-listed mobile operators (45%), and private universities, colleges of private medicine, private dental faculties, private engineering schools or private colleges solely dedicated to teaching ICT (15%) will remain as they are.

“The prevailing tax rate for the textile sector is 15%, and the SRO for this purpose expires on June 30, 2022. I propose to extend this facility until June 30, 2025,” the finance minister said.

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