Corporate tax cut unlikely in next budget
Thursday, 9 April 2009
The government might go harsh on the country's corporate sector in the next fiscal budget with the denial of their long-time plea for reducing the corporate taxes, reports UNB.
Sources in the National Board of Revenue (NBR) said cuts in corporate tax might badly affect the revenue collection in the next fiscal that falls on the trail of the ongoing global recession.
Finance Minister Abul Mal Abdul Muhith Tuesday had a meeting with the association of the tax officials of the NBR at his ministry, where this issue figured high.
The officials informed the minister of the new government that a five per cent reduction of corporate tax would result in a shortfall of more than Tk 40.00 billion in the public exchequer.
"Then the minister assured the tax officials that there would be no tax cut for corporate sector," said one NBR official, who was present at the meeting with the finance minister.
Currently, tax rate for companies listed for public trading is 27.5 per cent, while those not listed for public trading pay 37.5 per cent. The tax rate for banks, insurance, financial institutions and mobile-phone operators is higher yet - they pay 45 per cent.
The officials urged the finance minister not to reduce the corporate taxes, but rather suggested further raise in the rates in order to face the fallout of the worldwide economic meltdown.
Sources in the National Board of Revenue (NBR) said cuts in corporate tax might badly affect the revenue collection in the next fiscal that falls on the trail of the ongoing global recession.
Finance Minister Abul Mal Abdul Muhith Tuesday had a meeting with the association of the tax officials of the NBR at his ministry, where this issue figured high.
The officials informed the minister of the new government that a five per cent reduction of corporate tax would result in a shortfall of more than Tk 40.00 billion in the public exchequer.
"Then the minister assured the tax officials that there would be no tax cut for corporate sector," said one NBR official, who was present at the meeting with the finance minister.
Currently, tax rate for companies listed for public trading is 27.5 per cent, while those not listed for public trading pay 37.5 per cent. The tax rate for banks, insurance, financial institutions and mobile-phone operators is higher yet - they pay 45 per cent.
The officials urged the finance minister not to reduce the corporate taxes, but rather suggested further raise in the rates in order to face the fallout of the worldwide economic meltdown.