Global Tax Alert | 28 June 2013
Bangladesh announces 2013-14 budget proposals
On 6 June 2013, the Bangladesh government announced its budget for the fiscal year 2013/14. This Alert outlines the key proposals.
Increase in tax rates
- • 0.5% minimum tax on gross receipts applicable to business entities.
- • 5% tax rate increase from 35% to 40% for publicly traded cigarette manufacturing companies.
- • 2.5% increase from 42.5% to 45% for non-publicly traded cigarette manufacturing companies.
- • 5% tax increase from 35% to 40% for publicly traded mobile phone companies.
- • 15% (as compared to 10%) withholding tax rate applicable, if no taxpayer identification number is provided for a payment of fees for professional and technical services.
- • 4% tax collection rate increase from 6% to 10 % on cigarette manufacturers.
Reduction in tax rates
- • 2% tax rate reduction from 5% to 3% applicable to the hatchery and dairy industry.
- • Elimination of the tax collection tax on the premium over the face value of share of a company.1
- • Elimination of tax collection on bond sales.
- • 15% tax rebate for investments in private mutual funds.
- • Extension of the 15% concessionary tax for the jute and textile sector to June 2015.
- • Extension of the setup period of area based incentives/exemptions for certain specified new industrial undertakings and newly established physical infrastructure facilities to June 2015.
- • Extension of the 15% tax on income derived from the production of jute goods, fabric and dying to June 2015.
- • Extension of the 50% tax rebate on the export of handicrafts and the tax exemption in the poultry sector to June 2015.
1. Under the current law, when a company raises its share capital through book building, public offering, rights offering, etc., at a value in excess of face value of the share, a 3% withhold tax is imposed on the difference between the sales price and its face value.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (India), Kolkata
- • Dinesh Agarwal
+91 33 6615 3470
- • Rohit Bothra
+91 33 6615 3581
Ernst & Young LLP, Asia Pacific Business Group, New York
- • Chris Finnerty
+1 212 773 7479
- • Jeff Hongo
+1 212 773 6143
- • Kaz Parsch
+1 212 773 7201
- • Bee-Khun Yap
+1 212 773 1816
EYG no. CM3575