Corporate tax remains unchanged

Finance Minister AMA Muhith proposed to keep unchanged the existing tax rate for publicly traded companies at 25 percent and for non-publicly traded companies at 35 percent.

The difference in tax rates should be maintained for encouraging the companies to be listed with the stock exchanges, Muhith said in his speech.

The existing tax rate for publicly traded companies is very compatible with global average (24.29 percent), he said.

A few sectors including non-listed banks, non-listed mobile phone operators and cigarette manufacturing companies are paying tax at more than 40 percent rate which is planned to be brought down to 40 percent gradually, Muhith added.

The minister proposed to harmonise tax rates for all tobacco goods-manufacturing companies to be at the same level of tax rate of the cigarette companies which is currently 45 percent.