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Small companies will be pressured by the increase in transaction tax
Regardless of the profit or loss, businesses have to pay taxes. The turnover tax or transaction tax rate has been zero.6 percent for a long time. Financial Advisor Salehuddin Ahmed has increased it to 1 percent from the next fiscal year. Businessmen say that the increase in transaction tax will increase the financial pressure on small and medium enterprises.
Businessmen from various sectors say that the scale of company losses will be heavy due to the transaction tax. Many small businessmen may go out of business. The NBR has taken an inhuman decision like increasing the transaction tax to increase revenue. Instead, automation needs to be introduced and supervision increased. Only then will the government’s revenue collection increase.Follow
Small companies will be pressured by the increase in transaction tax

Regardless of the profit or loss, businesses have to pay taxes. The turnover tax or transaction tax rate has been zero.6 percent for a long time. Financial Advisor Salehuddin Ahmed has increased it to 1 percent from the next fiscal year. Traders say that the increase in transaction tax will increase the financial pressure on small and medium enterprises.
Traders from various sectors say that the scale of company losses will be heavy due to the transaction tax. Many small traders may go out of business. The NBR has taken an inhuman decision like increasing the transaction tax to increase revenue. Instead, automation needs to be introduced and supervision increased. Only then will the government’s revenue collection increase.
When asked, FM Plastic Industries Managing Director Muhammad Gazi Touhidur Rahman told Prothom Alo, “The transaction tax should not have been increased. If it causes losses, the companies will be in danger. Not only that, but traders who trade with our products at low profits will face terrible problems. Because their transactions are higher than their profits. The transaction tax will become a big burden for such traders.”
In the proposed budget for the upcoming 2025-26 fiscal year, Finance Advisor Salehuddin Ahmed announced an increase in the transaction tax by 0.4 percent to 1 percent from the current rate. The government will collect this 1 percent as income tax, in addition to value added tax (VAT) and other taxes. Even if the company is in a loss at the end of the year, it will have to pay this tax. Although there is a possibility of adjustment.
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Regardless of profit or loss, businesses will have to pay tax. The turnover tax or transaction tax rate has been zero.6 percent so far. It has been increased to 1 percent from the next fiscal year by Financial Advisor Salehuddin Ahmed. Businessmen say that the increase in transaction tax will increase the financial pressure on small and medium enterprises.
Businessmen from various sectors say that the company’s losses will be heavy due to the transaction tax. Many small businessmen may go out of business. The NBR has taken an inhuman decision like increasing the transaction tax to increase revenue. Instead, automation needs to be introduced and supervision increased. Only then will the government’s revenue collection increase.
When asked, FM Plastic Industries Managing Director Muhammad Gazi Touhidur Rahman told Prothom Alo, “The transaction tax should not have been increased. If it causes losses, the companies will be in danger. Not only that, but traders who buy products from us at low profits will face terrible problems. Because their transactions are higher than their profits. Transaction tax will become a big burden for such traders.”
In the proposed budget for the upcoming 2025-26 fiscal year, Financial Advisor Salehuddin Ahmed announced that the transaction tax will be increased by 0.4 percent from the current rate to 1 percent. The government will take this 1 percent as income tax, in addition to value-added tax (VAT) and other taxes. Even if the company is in loss at the end of the year, this tax will have to be paid. Although there is a possibility of adjustment.
Let’s say a company in the country has sold products worth Tk 100 crore. Then it will have to pay transaction tax of Tk 1 crore; but at the end of the year, it was found that the company had lost Tk 10 crore by selling the products. Then no corporate tax or income tax will be applicable on him. Still, the government will take 1 crore taka from him, which is called transaction tax, but it is basically corporate tax.
Talking to businessmen, it is known that transaction tax will have a greater impact on companies that are in loss. It will not have much of a negative impact on those who make a lot of profit. Because the amount of income tax at the end of the year is more than their transaction tax. As a result, they will be able to pay the remaining money to the government after deducting the money paid for transaction tax.
