Muhith proposes corporate tax cut for non-listed cos
Finance minister AMA Muhith on Thursday proposed to extend tax holiday to June 30, 2019 from the existing June 30, 2015 for the industrial and infrastructure sectors and to reduce corporate tax on non-listed companies to 35 per cent from 37.5 per cent.
He also proposed to keep unchanged the corporate tax rate for the publicly traded companies. ‘But, if any company gives more than 20 per cent dividend, it will get 10 per cent tax rebate facility,’ he proposed.
The finance minister also proposed to cut the minimum tax on companies’ turnover, irrespective of their losses or profits, to 0.30 per cent from the
existing 0.50 per cent.
Muhith made the proposals while placing before parliament the proposed budget for the fiscal year 2014-2015.
The finance minister said, ‘We have taken effective measures to further the existing incentives with a view to creating investment-friendly atmosphere for industrialisation and economic progress.’
‘I, therefore, propose to extend the existing tax holiday facilities from June, 2015 to June, 2019,’ he said.
‘I also propose to reinstate the facilities of accelerated depreciation alternative to tax holiday for the new industrial entrepreneurs,’ the minister said.
Following demands from different business bodies, the government in the 2013-2014 budget increased the tax holiday facility for the business till June 30, 2015.
Muhith on Thursday also proposed to exempt from tax all donations through banking channels to girls’ schools or colleges and vocational and technical institutions.
He also proposed tax exemption for the donations for national level research institutions established under any law engaged in research work in the field of agriculture, industry, science and technology.
-With New Age input
