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Corporate Tax Decreases Intended to Encourage Export Diversification

The government is willing to encourage export diversification by introducing a new corporate tax rate of 12% for all export sectors at the same rate as the readymade garment industry. Massive corporate tax cuts will ensure all other sectors are on equal opportunity. Moreover, the trade deficit with other countries would be lower with this n export-friendly initiative. Also, this decrement will minimize the balance of payment in a foreign currency. 

Currently, all sectors except the RMG pay a 30% tax on exports of goods and services. Moreover, export taxes on green industries will be set at 10%. Govt is willing to reduce a 10% tax on the internet providers for sourcing Internet services. Besides, This decision will slash bandwidth payments made by foreign companies with no establishments in Bangladesh from 20% to 10%. There will no longer be a 12% tax on advisory, consultancy, professional, credit rating, technical services, and technical assistance fees, but only a 10% tax instead.

The next budget may also propose considering the 5% tax-adjusted from imports of beverage concentrates, exports of services, and operations of inland ships and commercial vehicles as a minimum tax. And a 5% source tax on the rental value of water bodies that are not government-owned. 

Investments in the capital market will be a way for undisclosed money to become white in the next fiscal year. In the outgoing fiscal year, the untaxed money holders can invest in the stock market with a 25% tax payment plus a 10% penalty on the payable tax.

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