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Listed and non-listed companies get 2.5pc tax cut

Companies listed on the stock exchanges will get a 2.5 per cent corporate tax cut from the 2021-22 fiscal year, according to the budget proposal placed in the parliament on Thursday.

“I propose to further reduce the tax rate for listed companies from 25% to 22.5% for FY2021-22”, said Finance Minister AHM Mustafa Kamal.

He also proposed to reduce the tax rate for not-listed companies from 32.5% to 30%.

Kamal said, “The government is implementing various reform measures to make the capital market dynamic and vibrant. A few more initiatives will be taken soon to make the stock market a profitable institution and keep pace with the times.”

Steps also have been taken to make insurance services people-friendly and welfare-oriented, he added.

Stakeholders said the reduction of corporate tax will play an important role in making the capital market more vibrant.