Muhith to check if he can cut corporate tax

Finance Minister AMA Muhith yesterday promised to examine scope for reducing corporate income tax for the coming fiscal 2018-19. He gave the assurance at a meeting with secretaries of various ministries. Businesses have long been demanding it, a meeting participant quoted Muhith as saying. The meeting was organised by the finance ministry to hold consultations with senior public officials before going for formulating the next fiscal’s budget. Currently, the revenue authority collects corporate tax in six categories, ranging from 25 percent to 45 percent. Companies listed with the bourse face a 25 percent tax while non-listed ones pay 35 percent. Cigarette and bidi manufacturers have to pay a 45 percent income tax. Responding to secretaries’ requests, Muhith also promised to consider a hike in interest of a savings instrument called Pensioner Sanchayapatra.

ne of four types of savings instruments run by the Department of National Savings, Pensioner Sanchayapatra is a five-year savings scheme designed for retired public officials offering the highest 11.76 percent interest on reaching maturity. Muhith said the government’s contribution in public-private partnership schemes was likely to be fixed at 30 percent for the next fiscal year.