Finance Minister AMA Muhith has said corporate tax is high in Bangladesh, but ruled out any possibility of lowering it in the next budget.

“In some cases, corporate tax is very high. But I'm sorry nothing can be done about it this year,” Muhith said yesterday at a pre-budget discussion with the leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at his office yesterday.

Corporate tax rates range between 32.5 percent and 42.5 percent.

On the concern of the business community about the budget deficit, Muhith said an expansionary budget cannot be designed without a deficit.

“Scope for loans has not shrunk because of this,” Muhith said, adding that the credit to the private sector has increased.

M Jasimuddin, FBCCI's first vice president, who led the delegation, presented their recommendations for the next budget to the minister.

The apex trade body recommended fixing the corporate tax rates for the publicly traded companies at 32.5 percent if the companies give less than 10 percent dividends, according to news agency UNB.

FBCCI also recommended tax at 25 percent for the companies that give dividends above 10 percent but below 20 percent, and at 22.5 percent for the companies that pay dividends more than 20 percent.

They also recommended increasing the individual tax-free income ceiling to Tk 220,000 from Tk 180,000 now.

They suggested increasing the minimum income tax to Tk 2,200 from existing Tk 200.