Corporate tax come down

Finance Minister AHM Mustafa Kamal has proposed that the corporate tax of both listed and non-listed companies will be reduced in the budget of 2021-22 as per the expectations of businesses.

The proposal was made by the finance minister while presenting the proposed budget for the fiscal year 2021-22 in the parliament on Thursday.

The finance minister said in his budget speech that at present the ratio of private investment to GDP is 23 percent. The government has taken various measures to increase this ratio. Reducing corporate tax rates could make it easier to achieve the ratio of private investment to GDP.

The finance minister has proposed raising the corporate tax rate to 30 per cent for companies not listed on the capital market, which is currently 32.5 per cent.

Similarly, the corporate tax rate of listed companies has been proposed to be 22.5 per cent which is currently 25 per cent.

He has proposed to drop the corporate tax rate of one person's company to 25 percent from 32.5 percent.

This initiative has been taken to make the economy more attractive and to encourage the establishment of one-person company.

However, the corporate tax of listed banks, insurance and financial institutions has remained unchanged at 37.5%.