Grameen Bank seeks tax waiver extension until 2020

Grameen Bank (GB) has recently sought extension of its unconditional tax exemption facility until 2020, as the existing tax benefit for the entity is scheduled to expire on December 31, 2015.
Chairman of GB board of directors Professor Khandaker Mozammel Haque in a letter to the finance minister sought the tax benefit for next five years.
In the letter, the Nobel Prize winning micro-credit organisation urged the government to exempt it from payment of income tax, super tax and tax on business profit from January 1, 2016 to December 31, 2020.
The government offered the tax exemption facility to the organisation in phases since 1983. After every five-year term, the government extended the benefit following plea of the bank.
Tax officials said the decision on offering tax waiver further to GB would be taken by the government high-ups. Taxmen will follow their instruction in this regard.
They also said the bank has been enjoying the tax benefit since its inception, and the government may take the matter into active consideration.
Currently, the revenue board is coming out from the concept of full tax waiver for those who enjoyed tax exemption for a long period.
The tax authority is popularizing the concept of payment of a minimum tax, and gradually bringing taxpayers to full-fledged tax payment system, said a senior tax official.
For GB, it is quite different, as the micro-finance institution contributes to the country's poverty reduction.
"The revenue board would assess its contribution and activities for facilitating poor and proper utilization of the tax benefit for welfare of common people before offering the tax benefit," he added.
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.
GB has to submit its annual report to the Bangladesh Bank and the Ministry of Finance.
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