Corporate tax on private universities, medical and engineering colleges to be cut to 10%
Rate has already been reduced from 20% to 15% last year; corporate taxes for all other sectors to remain unchanged
The government is set to reduce the corporate tax rate for private universities, medical colleges, dental colleges, engineering colleges, and IT-focused private colleges from 15% to 10% in the 2026-27 budget, to be presented in parliament tomorrow (11 June).
The rate had already been cut once – from 20% to 15% – in last year's budget.
Corporate tax rates for all other sectors will remain unchanged, according to Ministry of Finance sources.
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Officials said the reduction reflects the government's policy support for higher education and skilled workforce development, and is intended to encourage greater private-sector investment in IT, medical, and engineering education – fields considered critical to future economic growth. If approved, the revised rate will take effect from 1 July 2026.
The measure is expected to benefit more than a hundred private universities and numerous private medical, dental, engineering, and IT institutions across the country.
Listed companies currently pay a 20% corporate tax rate, while non-listed companies are taxed at 27.5%.
Banks, insurance companies, and other financial institutions face a rate of 37.5%, while mobile telecom operators are taxed at 40% to 45%.
Export-oriented garment manufacturers enjoy preferential rates of 10% to 12%, subject to specific conditions.
Sabur Khan, president of the Association of Private Universities of Bangladesh (APUB), welcomed the move.
"The reduction is a positive step. The cost of providing quality education – particularly in technology, medical, and engineering – continues to rise. Lower tax obligations will allow institutions to invest more in infrastructure, research, and academic standards," he told TBS.
Economists note that while Bangladesh's tax-to-GDP ratio remains among the lowest in South Asia – creating pressure to boost revenue – maintaining competitive tax rates is essential for attracting investment.
The proposed relief is seen as an effort to strengthen human capital development through greater support for higher education.
