The proposed budget for the fiscal year 2025–2026 includes major initiatives aimed at boosting capital market participation and easing tax burdens on businesses. The government plans to increase the corporate tax gap between listed and non-listed companies from 5% to 7.5% to encourage more firms to list on the stock exchange. Listed companies may benefit from a reduced 20% tax rate, while non-listed firms could be taxed at 27.5%.
To help companies qualify for this reduced rate, the government is considering relaxing stringent conditions. Instead of requiring all transactions to be made through banking channels, companies may only need to route their income through banks to qualify.
Additionally, the interim government is planning to reduce penalties for misdeclaration of imports and cap interest on long-running tax disputes to ease the pressure on businesses. The penalty for misdeclaration could be halved from 400% to 200%, and interest accumulation may be limited to two years rather than the full duration of a case.
Other proposed reforms include repealing minimum fines for minor errors in import declarations, allowing tax commissioners discretion in imposing smaller penalties. These changes aim to improve Bangladesh’s ease of doing business ranking and support economic growth by fostering a more business-friendly environment.
