Government of Bangladesh is considering corporate tax exemptions in the productive sector to incentivize industrial setup and tax compliance. In the proposed budget for the upcoming fiscal year, there may be a 2.5% reduction in the corporate tax rate. Import of raw materials for consumer goods will also receive tax exemptions due to the rising dollar price. Additionally, there are proposals to extend the tax exemption period for 27 digital services for another two years.
The decision was made in a closed-door meeting between the finance minister and NBR Chairman, with further discussion scheduled with the Prime Minister. The proposed tax exemption aims to encourage tax payment transparency and increase overall tax revenue. However, certain conditions must be met to avail the corporate tax exemption, and failure to comply will result in a higher tax rate. The corporate tax rates vary based on the type and listing status of the companies, ranging from 20% to 45%.
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