The National Board of Revenue (NBR) reinstated tax exemption facility for Grameen Bank after three years of its revocation by the past government.
The income tax authority issued a Statutory Regulatory Order (SRO), on Thursday, allowing Grameen Bank to enjoy tax exemptions on its all types of income until December 31, 2029.
On December 31, 2020, the Awami League (AL) government scrapped the tax waiver of Grameen Bank claiming to treat all banks equally.
Before that, the Grameen Bank had enjoyed tax exemptions since its inception.
AKM Badiul Alam, Income tax policy member of NBR, said the tax benefit has been offered following a recent application of Grameen Bank in this regard.
The nature of operation of Grameen Bank is different from other banks, paying above 40 per cent corporate taxes, he told the FE.
"It is involved in microcredit business but not registered under Microcredit Regulatory Authority (MRA)."
The NBR has exempted the taxes as existing Income Tax Act-2023 allows microcredit organisations to enjoy tax exemption, he added.
Both the government and a vast number of the poor population are benefiting from the activity of the Grameen Bank, he also said.
However, it is not possible to offer a tax break on retrospective effect from 2021 as per law though the Grameen Bank has requested several times to do so previously in past government's regime, Mr Alam said.
Officials said the past government's perspective against DR Yunus led to the discontinuation of the tax exemptions to Grameen Bank.
The tax matters of Dr Yunus have come under scrutiny within less than two years after the Sheikh Hasina Government took power in 2009.
Grameen Bank was established under a separate act in 1983. It is not registered under MRA. So, the NBR has to issue SRO to allow tax benefits in a bid to end discrimination with other microcredit organisations, Mr Alam said.
As per SRO, the Grameen Bank will have to submit tax returns every year.
In 2013, the previous government scrapped the act but continued tax benefits under it.
In another SRO, the NBR also exempted As-Sunnah Foundation from payment of taxes. The tax break would be valid until June 30, 2029. The foundation is known for its huge voluntary work during floods and earthquake in Turkey.
Both the SRO came into effect from October 10, 2024.
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