Banks asked to follow NBR directive to deduct VAT

Bangladesh Bank (BB) Thursday asked all banks to follow the directive of the National Board of Revenue (NBR) in deducting VAT (value added tax) on the remuneration of their board of directors. Referring to an NBR directive, issued on February 27, 2014, the central bank advised all banks to deduct VAT at the rate of 15 per cent while processing the remuneration of the directors for joining board meetings. The NBR, however, issued the directive for reminding all concerned to deduct VAT at source while processing remuneration of their board members for attending meetings. These include all government, semi- government, autonomous and private organisations, non-governmental organisations (NGOs), banks, insurances companies, international organisations operating in Bangladesh and all other limited companies.     — BSS