Non-profit research bodies likely to get equal tax treatment

The government is considering formulating comprehensive policy guidelines for ensuring equal tax treatment for the country's non-profit research organisations, officials said.
Tax authority has already received a note from Finance Minister A M A Muhith to work on this issue.
The finance minister has taken the initiative following a letter sent by Commerce Minister Tofail Ahmed, requesting tax exemption for Bangladesh Foreign Trade Institute (BFTI).
The commerce minister, also the chairman of BFTI board of directors, in this regard referred to two similar research and training organisations of the government. Bangladesh Institute of Development Studies (BIDS) and Bangladesh Agriculture Research Institute (BARI) are enjoying tax exemption facility.
He requested the finance minister to consider allowing tax waiver facility to BFTI on the amount, received as donations for research and training from the government or other sources. BIDS and BARI are enjoying tax exemption for the same as the government-supported organisations.
The commerce minister sent the letter to the finance minister recently with a request for granting the tax benefit to BFTI.
Following the plea, the finance minister has forwarded the letter to National Board of Revenue (NBR) with his comment on such type of organisations.
"What is the current situation now? Here it has been found that two organisations have been enjoying tax waiver," the finance minister wrote in his note.
BFTI was established in 2003 as a project of European Union (EU). It is the first public-private partnership entity, under Ministry of Commerce, and is currently operating with the government's fund support.
The government owns 60 per cent stake of the consultancy institute, while business associations own the rest 40 per cent. It has a 16-member board of directors, comprising heads of various public and private sector organisations.
BFTI maintains local and international data relating to trade and commerce, and also carries out different types of research to help export development.
Ministry of Finance allocated Tk 250 million endowment fund to BFTI after expiry of EU funding.
"The institute has been carrying out different training programmes with fees to be self-reliant. It has also conducted different research activities and submitted their findings," the commerce minister wrote in the letter.
Currently, BFTI is enjoying exemption from VAT only from its income from research, while its other earnings are taxable.
The commerce minister proposed the finance minister to allow the institute enjoy VAT and income tax exemption on its income from educational activities, training and research work.
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