According to Bangladesh’s National Board of Revenue (NBR) the International Monetary Fund (IMF) has proposed the government to end the tax rebate facility for 33 industries, which has been provided to these sectors for 10 years.
The IMF has stipulated that the tax rebate privileges must end by June 2025 under the Income Tax Act. Furthermore, the IMF has also advised the government not to renew or extend the tax rebate facility beyond the June 2025 deadline.
Some of the sectors in the list include pharmaceutical ingredients, agricultural equipment, automobiles, contraceptives and rubber latex, essential electronics components, bio-fertilizers, computer hardware, household appliances, furniture, spare parts manufacturing, leather and leather products, amongst others.
The NBR has already initiated the process of identifying the relevant sectors to fulfil the IMF requirements.
This development unfolded after the Bangladesh government sought financial assistance from the IMF in 2022. In 2023, the IMF granted a loan of USD 4.7 billion.
Under the Income Tax Act, the fourth part of the sixth schedule provides a 10-year tax rebate to 33 types of organisations within the manufacturing sector.
