Grameen Bank’s tax exemption reinstated for five years

The government has reinstated Grameen Bank's tax exemption for the next five years, extending it until December 2029.

The National Board of Revenue (NBR) issued a gazette on Thursday, confirming the reinstatement of Grameen Bank, founded by Nobel Laureate Prof Muhammad Yunus, now the chief adviser of the interim government.

"This facility became effective the day the order was issued," the notification said, signed by NBR Chairman 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, resulting in the loss of the tax waiver for Grameen Bank.

Meanwhile, the NBR, in a separate notification, said no income tax will be applicable on donors who will donate to As-Sunnah Foundation, a charity organisation. The facility will continue until June 2029.

The As-Sunnah Foundation is a non-political and non-profitable government-registered organisation. It was established in 2017 by Shaikh Ahmadullah.