TDS Desk:

Producers of fridges, freezers, air conditioners and motorbikes will have to pay 20% corporate tax, double the existing rate, from July 1, a government notification said Wednesday.

The increased tax rate will be applicable until 30 June 2032, the notification issued by National Board of Revenue (NBR) said. This is why, the prices of fridge, air conditioner and motorbikes may go up further.

In July 2009, the NBR started allowing low corporate tax rate for vehicle and electronic appliance manufacturers for bolstering local manufacturing competence. Only 5% annual corporate tax was imposed on the producers, but in 2020, the rate was increased to 10%.

Now the Prof Muhammad Yunus-led interim government has further doubled the tax to increase state earnings and secure the full $4.7 billion IMF bailout package.

Bangladesh suffers from poor revenue earning, thanks to successive governments extending high tax benefits to win favours from big corporates.

In the present fiscal year, the government provided Tk1.63 lakh crore tax benefits.