A boycott has significantly reduced Coca-Cola’s sales in Bangladesh. Consequently, Turkish company Coca-Cola Issek acquired Coca-Cola Bangladesh for $130 million. The tax on the beverage sector, initially proposed to be reduced for the 2024-25 fiscal year, has instead increased. The new financial year sets a minimum tax of 3% and a supplementary duty of 30%. The Bangladesh Investment Development Authority (BIDA) recommended reducing the minimum tax rate by 1% and the supplementary duty by 15%. BIDA highlighted that the beverage sector’s tax rate stands at 48.2%, potentially rising to 53% with the proposed changes, impacting sales and prices. The government’s revenue from the beverage sector dropped by 20% in FY 2023-24 compared to the previous year. BIDA emphasized that maintaining a reasonable tax rate is crucial for foreign direct investment, economic development, and increasing foreign exchange reserves. It proposed keeping the tax structure stable for three years to encourage investment, sustain the beverage sector, and create a favorable environment for foreign investments.
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