GB finally gets tax exemption for 6 months with retrospective effect

May 21, 2015

The National Board of Revenue has finally provided Grameen Bank with exemption from paying income tax for the period of six months with retrospective effect from January to June 2011. The revenue board issued a statutory regulatory order in this connection on May 11, one year after making the decision on the issue in a board meeting held in June last year.Now, the GB will not have to pay income tax worth Tk 77 crore for that period, an income tax official told New Age on Wednesday.
The revenue board, however, will not refund the money worth Tk 21.50 crore the GB had paid as tax for the period, he said.
The paid amount can be adjusted if any tax liability is created after the exemption period which is scheduled to expire in December 2015, the official said.
The GB, however, has already sought continuation of the tax waiver for another 5 years up to 2020.
The country’s leading microcredit body had enjoyed tax exemption facility from its inception in 1983 to December 2010.
The decision of extending the facility further remained pending until June 2012 when the revenue board had again provided exemption to the GB for four years and six months until December 2015 with retrospective effect from July 2011.
In the process, the period from January 2011 to June 2011 had been left out of the exemption facility.
Since then, the GB has been seeking tax exemption for the period saying that the organisation was facing complexities in preparing financial statement for the period.
The NBR for several times had rejected the plea of the bank saying that there was no scope of refunding the paid tax.
But later on June 2014, the revenue board changed its decision in line with the government’s softened stance on the bank.

-Input from New Age

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