The lifting of tax rebate facilities for 33 industries has been suggested by the International Monetary Fund (IMF). For a maximum of ten years, several industries have benefited from tax refund programmes at different rates.
According to sources, the National Board of Revenue (NBR) has already begun completing the industries to satisfy the IMF’s requirements.
Just before Bangladesh receives the third installment of a loan, an IMF group is currently in Dhaka to assess the country’s overall economic status. Meetings between the NBR officials and the IMF delegation are planned to discuss issues about revenue collection and the revenue sector’s advancement towards achieving IMF requirements.
Earlier, a technical team of the IMF held several meetings with NBR officials last month. The IMF team recommended lifting tax rebate facilities. It has been learned that the visiting IMF delegation may want to know about the progress in implementing the recommendations. The meetings between the IMF delegation and NBR start next week.
Bangladesh applied for a loan from the IMF in 2022. Bangladesh received a US $ 4.7 billion loan from the international organisation in 2023. Bangladesh has already received two loan payments.
According to the country’s Income Tax Act, the tax rebate services would be discontinued in June 2025, according to the IMF. The IMF recommended against extending this deadline after June of the next year.
The fourth part of the sixth schedule of the Income Tax Act grants 33 types of organisations in the manufacturing sector a 10-year-tax-rebate facility. The sectors in this list includes textiles machinery and manufacturing of synthetic fibres or man-made fibres.