Bangladesh’s National Board of Revenue (NRB) is reportedly planning to increase the source tax on the interest income of educational institutions and Bangladesh Telecommunication Regulatory Commission (BTRC) from mobile phone companies in the 2025 fiscal year.
The tax could potentially double the current rate of 10%.
Presently, public universities and educational institutions under monthly pay orders (MPOs) pay a 10% source tax on their interest earnings from savings. If the rumours are true, this rate could increase to 20%. However, primary schools are likely to see TDS (Tax Deducted at Source) within the range of 10%.
The TDS on BTRC’s earnings from revenue sharing, annual fees, and spectrum charges is currently 10%.
The NBR collected over 50% of income tax for the fiscal year of 2023 from tax deduction at source and half of the value-added tax (VAT) through VAT deduction at source (VDS).
