Addressing a pre-budget meeting with stakeholders, he indicated a gradual return to the standard corporate tax rate of about 27.5 per cent.
Bangladesh’s National Board of Revenue has said the reduced corporate tax rates of 10-12 per cent being imposed on the RMG sector now may not last longer.
At a pre-budget meeting with stakeholders, it indicated a gradual return to the standard 27.5-per cent rate.
AmCham Bangladesh proposed rationalising the 1-per cent minimum tax on annual turnover and lowering tax rates for offshore banking units.
Export-oriented knitwear and woven garment manufacturers, along with green-certified factories, enjoy lower corporate tax rates of 10 per cent and 12?per cent respectively. These incentives are designed to boost exports and encourage sustainable industrial practices.
Exporters already enjoy a 50-per cent income tax exemption on export earnings, which reduces their actual tax burden to a great extent, he was cited as saying by domestic media outlets.
Women Entrepreneurs Network for Development Association (WEND) president Nadia Binte Amin suggested equalising corporate tax rates and reducing the 1-per cent tax deducted at source (TDS) on export earnings for fully women-owned businesses.
She also proposed a 10-per cent tax rebate for companies investing in research and development, innovation, training and sustainable development.
The American Chamber of Commerce in Bangladesh (AmCham) proposed rationalising the current 1-per cent minimum tax on annual turnover. It also suggested maintaining a level-playing field in the banking sector by applying a uniform 37.5-per cent tax rate to both foreign and local commercial banks.
It also recommended lower tax rates for offshore banking units, similar to other Asia-Pacific countries, where rates range from 0 to 20 per cent.
Other proposals included simplifying procedures under Double Taxation Avoidance Agreements, speeding up certification processes, introducing a standard foreign currency conversion method in line with international practices, and rationalising withholding tax rates.
Fibre2Fashion News Desk (DS)
