Govt may go harsh on corporate sector
The government might go harsh on the corporate sector in the next fiscal budget with the denial of their long-time plea for reducing the corporate taxes, presently ranging up to 45 percent.
Sources in the National Board of Revenue (NBR) said that cuts in corporate tax might badly affect revenue collection in the next fiscal year that falls on the trail of the ongoing global recession.
Finance Minister AMA Muhith yesterday had a meeting with the association of the tax officials of the NBR where this issue figured high.
The tax officials informed the minister of the new government that a 5 percent reduction in corporate tax would result in a shortfall of more than Tk 4,000 crore in the national exchequer.
“The minister took this as serious and assured the tax officials there would be no tax cuts for corporate sector,” said one NBR official, who was present at the meeting with the finance minister at his ministry.
Currently, tax rate for companies listed for public trading is 27.5 percent while those not listed for public trading pay 37.5 percent.
The tax rate for banks, insurance, financial institutions and mobile-phone operators is higher yet---they pay 45 percent.
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