On 28 June 2018, the Parliament of Bangladesh has passed the Tk 464,573 crore national budget for 2018-19 fiscal year. Finance Minister AMA Muhith moved the Appropriations Bill, 2018 seeking a budgetary allocation of Taka 571833,82,92,000 which was passed by voice vote.

On 7 June 2018 Finance Minister unveiled a Tk 4,64,573 crore budget for FY2018-19 which will come into effect from June 1. The House passed the Finance Bill-2018, with some changes in VAT and tariff rates, aiming to boost the ICT sector and promote local industries.

Corporate tax

For non-publicly traded bank, Insurance and Financial Institutions the reduced corporate tax of rate of 40% has been passed from previous 42.5%. Corporate tax rate for publicly traded bank, Insurance and Financial Institutions has been reduced to 37.5% from previous 40%. The corporate tax rate for any other business remained unchanged.

Corporate tax rate is increased to 15% from 12% for non-listed garment sector and 12.5% corporate tax for the publicly listed garment companies on the stock market. Corporate tax rate for green garment factories also increased to 12% tax rate from 10%.

Individual tax

There is no significant change in the individual tax from previous year except the allowable perquisites limits has been increased to BDT 5,50,000 from previous BDT 4,75,000.

VAT

The Finance Bill 2018 was passed in Parliament with some changes in VAT and tariff rates, aiming to boost the ICT sector and promote local industries. The VAT on internet service lowered to 5% from the proposed 15%, while 5% additional VAT from assembling mobile phone sets was exempted.

10% supplementary duty on filament bulbs was scrapped as energy bulbs are still costly for the poor and marginal people. 7% additional VAT on locally produced motorcycles was also exempted.