Finance Minister AHM Mustafa Kamal on Thursday proposed to cut the corporate tax rate of the non-publicly traded companies by 2.5 per cent for the upcoming fiscal year (FY) 2020-21.
The tax rate is proposed to be set at 32.5 per cent from existing 35 per cent for the non-listed companies, he said in his budget proposal for the upcoming FY.
However, the corporate tax rate for banks, leasing and insurance companies, mobile phone companies and cigarette manufacturers and publicly traded companies remained unchanged.
Currently, the tax rate for publicly traded companies is 25 per cent. The minister proposed the cut for easing the tax burden of 'valued' taxpayers at this critical time of the Covid-19 pandemic.
At present, the readymade garment (RMG) factories having green building certification enjoy a special tax rate of 10 per cent and the factories without such certification pay taxes at a rate of 12 per cent.
The deadline of the SRO providing this special tax rate ends on June 30, 2020.
The finance minister proposed to extend the time-limit of the SRO for two more years.
© 2021 - All Rights with The Financial Express