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“This is the right step as the corporate tax rate in Bangladesh is higher than the South Asian average,” said Nasiruddin Ahmed, a former NBR chairman.

Gradually, the corporate tax rate will be brought down to 25 percent, according to the finance ministry official.

“I don’t see why there needs to be a distinction between listed and non-listed companies. If the corporate sector flourishes, it is good for the economy as it will generate employment,” Ahmed added.

Another measure that is in the works is the withdrawal of tax exemption for poultry and fisheries industries.

The purpose of tax exemption is to help the domestic industry become more competitive.

“But poultry and fish are not imported, so there is no competition from foreign producers. There is no need for tax exemption for these two sectors,” the finance ministry official said.

Instead, retracting the tax exemption will compel the local industries to level up.

Besides, many use the facility to evade taxes, according to Ahmed.

“This is actually a concern and the Anti-Corruption Commission has lodged many cases,” he said.

The poultry and fisheries sectors are composed of a large number of small producers who are outside the tax net, according to the finance ministry official.

“You could say those industries have perfect competition, as they say in economics.”

In economics, perfect competition is when a large number of producers with the willingness and ability to supply the homogenous product at a certain price exists. As a result, individuals are unable to influence prices more than a little.

“And the taxmen are yet to reach them, so removing the tax exemption facility will have no impact on them. On the upshot, one of the many loops for tax evasion will be closed,” the official added.