Bangladesh National Parliament on June 29 approved new schedule for corporate income tax for the fiscal year 2015-2016 reducing tax burden for publicly traded commercial banks, insurance companies, financial institutions and other companies.
Corporate income tax for cigarette manufacturers listed with the countries stock market, however, has been increased.
The new corporate income tax rates became effective from July 1, 2015, first day of the July-June fiscal year.
The government reduced corporate income tax to 40 per cent from the earlier 42.5 per cent for publicly traded banks, insurance companies and other non-banking financial institutions, to 25 per cent from 27.5 per cent for publicly traded other companies, except mobile operators, cigarette manufacturers and merchant banks.
Corporate income tax rate for non-listed commercial banks remained unchanged at 42.5 per cent.
Corporate tax for listed cigarette companies has also been fixed at 45 per cent increasing from the earlier 40 per cent. Currently, only British American Tobacco Company is listed with the Bangladesh Stock Market. The tax rate for non-listed cigarette companies remained unchanged at 45 per cent.
In addition, all kinds of taxpayers including individuals will also have to pay income tax at the rate of 45 per cent on their income from cigarette manufacturing sector.
Minimum turnover tax, irrespective of profit or loss, for companies for first three years of commencement of commercial operation has been set at 0.10 per cent from the current 0.30 per cent.
The tax rates for publicly traded mobile operators at 40 per cent, for non-listed mobile operators at 45 per cent, for merchant banks at 37.5 per cent and for other non-listed companies at 35 per cent remained unchanged.
Currently, out of six mobile operators, only Grameenphone, a sister concern of Norway-based Telenor Group, is listed with the stock exchanges in the country.
