The National Board of Revenue (NBR) today (Oct 12) decided to exempt Grameen Bank from taxes after nearly four years.
NBR announced the decision, granting the bank tax exemption until 31 December 2029.
A similar privilege was extended to As-Sunnah Foundation, a non-profit charitable organisation, with exemption until June 2029.
Grameen Bank had been enjoying tax exemptions since its inception in 1983 under a military ordinance. Even after this ordinance was converted into law in 2013, the provision for tax exemption under Section 33 of the Grameen Bank Ordinance remained intact.
However, this benefit was withdrawn by the Awami League government on 1 January 2021.
Last Thursday, the NBR published an official gazette reinstating Grameen Bank’s tax exemption facility, effective immediately.
According to the gazette, Grameen Bank’s income will be exempt from taxes in compliance with sub-sections (5) and (6) of Section 76 of the Income Tax Act of 2023. However, the bank must continue submitting annual tax returns.
On the other hand, As-Sunnah Foundation, which gained attention for its significant humanitarian efforts during recent floods, was also granted tax exemption by the NBR.
Founded in 2017 by Islamic scholar Shaykh Ahmadullah, the foundation operates as a non-profit religious charitable organisation focused on educational and welfare activities.
The tax exemption applies to all donations received by the foundation until 2029, provided it complies with tax filing requirements.
Grameen Bank, now led by Professor Yunus, who also serves as the head of Bangladesh’sinterim government, provides microcredit services to millions of people.
According to the 2023 database of the Microcredit Regulatory Authority (MRA), Grameen Bank has over 10.36 million members, with 7.16 million borrowers and loans totaling Tk247.57 billion.
NBR Chairman Md Abdur Rahman Khan stated that although Grameen Bank is classified as a bank, it operates under the principles of microfinance institutions, which are generally tax-exempt under MRA regulations. Thus, the reinstatement of the tax exemption is considered justified.
As-Sunnah Foundation has also been lauded for its relief efforts during the 2020 Covid-19 outbreak and the 2022 floods in Sylhet and Sunamganj.
The foundation has set a goal of providing Tk1 billion in flood relief this year.
BDST: 1840 HRS, OCT 12, 2024
MSK/SMS
