Bangladesh: The IMF Prescribes Ending Tax Exemptions

The Daily Star | 29 April 2024

This article by Md Asaduz Zaman was published in the Daily Star.

The International Monetary Fund (IMF) has prescribed that Bangladesh must abolish VAT and income tax exemptions in various areas in order to accelerate revenue collections from the next fiscal year. It recommended the National Board of Revenue (NBR) discontinue the tax holiday for the information and communication technology industry and abolish the tax benefit for mining and petroleum extracting companies. The multilateral agency also proposed imposition of a 15 percent VAT on all businesses with over Tk 3 crore annual turnover and offering them input tax credits. It suggested the elimination of truncated VAT rates to accelerate overall revenue collection. The recommendations were made by the visiting mission of the IMF during a meeting with the NBR at the latter’s headquarters in Dhaka.

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