Dhaka, June 29 -- The government has proposed cutting corporate tax rates by 2.5 percentage points for companies that conduct all their transactions through banking channels, responding to longstanding calls from the business community for lower corporate taxes.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced the proposal during his closing speech at the budget session in parliament on Monday.

The sitting began in the morning with Speaker Hafiz Uddin Ahmad presiding.

Opposition leader Shafiqur Rahman took part in the budget discussion before Leader of the House Tarique Rahman addressed parliament.

Presenting the proposal as part of efforts to make the capital market more sustainable, the finance minister said: "I ...