The National Board of Revenue (NBR) yesterday formed a nine-member committee to make a policy framework for tax expenditure.

The tax expenditure is a form of tax subsidy that includes rebates, discounts, exemptions and reduced rates of taxation.

The tax administrator has formed the committee to assess its overall direct and indirect tax exemptions as the International Monetary Fund has been asking to cut the existing tax expenditure since it approved a $4.7 billion loan for Bangladesh. 

The committee has been asked to submit the report within seven days.

Mirza Mohammad Mamun Sadat, first secretary of tax policy of the NBR, will chair the committee while Md Bodruzzaman Munshi, second secretary of the VAT policy, will serve the committee as member secretary.