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Relatively higher corporate tax rates in Bangladesh are dampening the spirit of foreign investors, who are preferring competing countries, according to the Bangladesh Investment Development Authority (BIDA), which recently proposed lowering the tax rate to attract foreign direct investments (FDI). BIDA proposed reducing the tax rate for non-listed companies from 30 per cent to 28 per cent in the next budget.
“The overall burden of corporate tax rate in the country stands at 40-45 per cent due to other taxes, including advance income tax and source tax, while the average global corporate tax rate is 21-24 per cent. It is 20 per cent in Vietnam, 25 per cent in Indonesia and 24 per cent in Malaysia,” said BIDA director general Shah Mohammad Mahboob in a pre-budget discussion.
BIDA has also called for bringing tech giants, such as Facebook, Google or Amazon, under corporate tax, Bangladesh media outlets reported. At present these companies are only paying value-added tax.
Relatively higher corporate tax rates in Bangladesh are dampening the spirit of foreign investors, who are preferring competing nations, says the Bangladesh Investment Development Authority, which recently proposed lowering the tax rate to attract foreign investments. It proposed reducing the tax rate for non-listed companies from 30 per cent to 28 per cent.
The Bangladesh Economic Zones Authority (BEZA), the Bangladesh Export Processing Zones Authority (BEPZA) and the Business Initiative Leading Development (BUILD) also made suggestions at the meeting.
National Board of Revenue chairman Abu Hena Mohammad Rahmatul Muneem, who chaired the discussion, however, said corporate tax is relaxed to a great extent in the country.
Fibre2Fashion News Desk (DS)
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