BSS-26 Banks get corporate tax cut facility fortunately: NBR chairman

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ZCZC

BSS-26

NBR-CORPORATE TAX

Banks get corporate tax cut facility fortunately: NBR chairman

DHAKA, June 21, 2018 (BSS)-Banking sector gets the corporate tax cut
facility fortunately as the finance minister had a plan to reduce this tax
rate but wholesale reduction of such tax affects revenue earnings, said NBR
chairman Md Mosharraf Hossain Bhuiyan.

Speaking at a discussion on the proposed national budget for fiscal year
2018-19 (FY19), he said corporate tax has been reduced for banking sector as
this tax rate is higher for this sector except mobile phone operators and
tobacco.

There is also another reason behind lowering this tax for banks–creating
pressure for downsizing lending rate, he said, adding that though it has not
been done directly. “Ultimately, they (banks) will be told to lower lending
rate,” he added.

Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Research
Institute (PRI), a private research organization, jointly organized the
discussion with MCCI president Nihad Kabir in the chair.

PRI executive director Ahsan H Munsur and KPMG’s senior partner Abid H
Khan presented two keynote papers.

Ahsan H Munsur in his paper suggested that the banks which will bring down
the lending rate below 10 percent should be allowed to enjoy the corporate
tax cut facility as proposed in the national budget for FY19.

MCCI president Nihad Kabir said other sectors along with the RMG should be
given tax rationalization facility for diversification of the country’s
export products.

Abid H Khan highlighted various aspects of the finance bill of the budget
and suggested taking into consideration the issue of increasing the
individual tax free income limit.

PRI chairman Zaidi Sattar, ACI chairman M Anis Ud Dowla, former commerce
secretary Sohel Ahmed Chowdhury and MCCI member Sayed Ahmed Khan, among
others, took part in the discussion.

BSS/ASG/TAN/MMA/1900hrs