BMBA demands slashing of corporate tax rate

Business Desk :
Bangladesh Merchant Bankers Association (BMBA) on Tuesday demanded of the government to reduce further the corporate tax rate of the listed companies by 7.5 per cent at 15 per cent.
BMBA President Md Sayedur Rahman made the proposal at a pre-budget meeting with the National Board of Revenue (NBR) for the next fiscal year (FY23) held at the conference room of the NBR Bhaban in the capital’s Segunbagicha area. Presided over by NBR member (customs policy) Md Masud Sadique, representatives from the Bangladesh Insurance Association (BIA), Dhaka Stock Exchange (DSE), Chattogram Stock Exchange (CSE) placed their various proposals in the meeting.
NBR member (VAT policy) Zakia Sultana and NBR member (Income tax policy) Shamsuddin Ahmed were also present.
Speaking on the occasion, BMBA President Md Sayedur Rahman said that the present corporate tax rate for the listed companies is now 22.50 per cent, but despite this, many good companies with strong fundamentals are not being encouraged to become enlisted with the capital market. “Still there is a lack of good companies with strong fundamentals in the capital market. So, I propose to reduce this tax rate at 15 per cent,” he added. Sayedur alleged that there are some companies in the country which are giving lower tax despite making hefty profit as well as enjoying various facilities. He opined that if such companies could be listed with the capital market through reducing the tax rate, then the revenue collection of the government would increase further. Currently the corporate tax rate for the non-listed companies is 30 per cent, which is 22.50 per cent for the listed companies.
The Merchant Bankers Association President also demanded for reducing the corporate tax rate for the merchant banks at 25 per cent from the present level of 37.50 per cent. Taking part in the budget discussion, Bangladesh Insurance Association (BIA) executive member and Asia Insurance managing director Imam Shahin proposed for withdrawing the 5 per cent gain tax on the profit of the policy holders of the all life insurance companies as per the income tax ordinance of 2014.