Govt keeps corporate tax rates unchanged in FY26-27 budget

The government has decided to keep corporate tax rates unchanged in the FY2026-27 budget, despite calls from the business community for reductions, while introducing measures to simplify tax compliance and improve transparency.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday announced that corporate tax rates will remain unchanged for the next fiscal year, citing the need for policy stability and investor confidence.

Presenting the national budget in Parliament, he said the government aims to maintain a stable tax regime while gradually working toward future reductions through broader tax base expansion and improved collection efficiency.

He also announced a series of taxpayer-friendly reforms, including simplified corporate tax procedures, expanded online filing and payment systems, reduced regulatory burdens and wider recognition of allowable business expenses.

The budget proposes automation and greater transparency in audit selection and withholding tax verification processes.

Under the existing structure, general companies are taxed at 27.5 percent. Listed companies may pay 22.5 percent, reducible to 20 percent under certain conditions, while banks, insurance firms and non-bank financial institutions face rates up to 40 percent.

Tobacco manufacturers remain subject to the highest effective burden at 45 percent plus surcharge, while mobile operators, co-operatives and private educational institutions are taxed at varying concessional rates depending on sector classification.

TZ