GB gets tax waiver for five years

Grameen Bank (GB) got tax waiver for the next five years as the National Board of Revenue (NBR) decided Tuesday to extend the facility from January 2016.
The NBR in a board meeting took the decision as the ongoing tax-exemption facility for the micro-credit pioneer is scheduled to expire on December 31, 2015.
The Nobel-winning micro-credit organisation will be exempted from payment of income tax, super tax and tax on business profit from January 01, 2016 to December 31, 2020.
Officials said the revenue board took the decision "after a detailed review of the activity of the GB and following request of the bank's management".
The chairman of the GB board of directors earlier in an application to the finance minister had sought the tax benefit for next five years.
GB is disbursing micro-credit in some 81,390 villages across the country through its 2,568 branches. Some 50 million people are beneficiary of its credit-to-the-poor banking operations. GB disbursed Tk 135 billion a year.  
Officials said the GB has been enjoying the tax-exemption facility since its inception.
In the application, the GB management said shareholders (both government and landless people) are reaping dividend due the tax waiver. The GB provided 30 per cent dividend from 2008 to 2013.
In the 2012-13 tax year taxmen found a total of Tk 3.65 billion worth of net income of the GB, which saw a raucous management change in the recent past.
The government has offered the tax holiday to the organisation in phases since 1983. The government extends the benefit every five years on plea from the bank.
Officials said the micro-finance institution contributes to poverty reduction in the country.
The revenue board has assessed its contribution and activities for facilitating poor and proper utilization of the tax benefit for welfare of common people before offering the tax benefit.
According to the Grameen Bank Ordinance, the micro-credit organisation will enjoy income-tax exemption for the period specified by the government by issuing gazette notification.
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