Non-listed companies will see reduction in corporate tax by 2.5 percent for non-listed companies in the next fiscal year. “To ease the tax burden of valued taxpayers at this critical time of the Covid-19 pandemic, I propose a 2.5 percent reduction in the tax rate of non-publicly traded companies to fix it at 32.5 percent from that of 35 percent,” said finance minister at the proposed budget. Though, it was the prime demand of private sector businesses to reduce corporate tax to get breathing space amid huge losses incurred amid pandemic, the government remains rigid in its position in the proposed budget. Bank and financial institutions have long been demanding for reducing corporate tax to 32 percent from existing 37.5 percent. The demand became acute after virus attack as banks are burdened with implementing stimulus package. Moreover, interest rate cap eroded profitability of banks drastically. But finally, their demand did not get attention in the budget as the government is also under pressure of collecting financing amid falling economy.
