The government is likely to reduce the corporate tax for financial institutions, even though the move would lead to revenue losses of about Tk 1,000 crore.

The government is likely to offer a tax break to the automobile, tyre and bicycle industries to promote growth and investment in the sectors, an official said yesterday.

Planning Minister AHM Mustafa Kamal yesterday criticised Bangladesh's high tax rates, saying it prevents government from earning more revenue for the country.

Tax collection improved in March with economic activities regaining pace as the violent political situation gradually subsided.

The Dhaka and Chittagong stock exchanges yesterday requested the National Board of Revenue to increase the ceiling for tax-free dividend income to Tk 50,000 from Tk 20,000 at present.

The revenue administration has tightened rules to prevent the use of fake taxpayer identification numbers by dishonest people for various purposes, including land and vehicle registration, at public and private agencies.

Bangladesh has at least 10,152 people with individual net wealth of more than Tk 2 crore, according to data compiled by the National Board of Revenue. But taxmen and analysts said the number of wealthy people and the amount of wealth shown by taxpayers should be higher from the viewpoint of property price spirals and the rise in the number of apartments and expensive cars.

Taxpayers will have to explain the sources of their income while making a land purchase, said the National Board of Revenue.

Foreign investors operating in Bangladesh yesterday called for a cut in corporate and other taxes to align them with the rates in