Grameen Bank’s tax waiver reinstated

The interim government has reinstated a tax exemption for Grameen Bank and offered it for the next five years, meaning until December 2029.

The microfinance specialised community development bank was founded by Nobel laureate Prof Muhammad Yunus, who is now the chief adviser to the interim government of Bangladesh.

The National Board of Revenue (NBR) issued a gazette in this regard on Thursday.

"This facility came into effect the day the order was issued," said the notification signed by NBR Chairman Md Abdur Rahman Khan.

However, Grameen Bank will still be required to submit annual income tax returns, as per the gazette.

Grameen Bank has enjoyed tax exemption since its inception in 1983 as its activities are primarily focused on poverty alleviation. The benefit is typically renewed every five years and was last extended until December 2020.

The previous government did not extend the exemption after that period.

"Although Grameen Bank is a bank by name, it actually runs microcredit activities like a non-government organisation [NGO]," NBR Chairman Khan told The Daily Star yesterday.

So, the services of Grameen Bank are similar to those of microcredit institutions. It is fair for Grameen Bank to get an income tax exemption, which it used to get previously, he said.

Meanwhile, the NBR, in a separate notification, said no income tax would be applicable on donors of As-Sunnah Foundation, a charity organisation.

The facility will continue until June 2029. However, the donors will have to submit their tax returns too.

As-Sunnah Foundation is a non-political and non-profit government-registered organisation.

The foundation was established in 2017 by Shaikh Ahmadullah, who came into the limelight for relief efforts during the recent floods and post-flood rehabilitation activities, including in Feni and Cumilla.

During the floods, As-Sunnah Foundation raised over Tk 100 crore in relief funds, Ahmadullah stated in a video interview by newspaper Kalbela.

Besides, the organisation was praised for charitable activities during the pandemic and the 2023 Turkey-Syria earthquake.

The tax administration has taken the move to encourage these kinds of philanthropic activities, according to an official of the NBR.