IMF proposes Bangladesh to scrap tax rebates for 33 sectors: Reports

Media reports underlined this while adding the National Board of Revenue (NBR) has initiated steps to identify the affected industries to comply with the IMF’s recommendation.

An IMF delegation is in Dhaka for discussions preceding the disbursement of Bangladesh’s third instalment of the loan even as the delegation aims to assess the country’s overall economic landscape while scheduled meetings with NBR officials will delve into revenue collection matters and the progress of the revenue sector in meeting IMF conditions.

The IMF directives stipulate the termination of tax rebate facilities by June 2025 in alignment with the Income Tax Act.

Notably, the IMF recommended against extending this deadline beyond June of the following year.

Under the fourth part of the sixth schedule of the Income Tax Act, a 10-year tax rebate is granted to various manufacturing sectors. Among these are boilers and related equipment, leather products, textiles machinery, synthetic or manmade fibres, and many others.

The IMF's recommendation signals a significant shift in fiscal policy, potentially impacting industries accustomed to these tax incentives. The move reflects broader efforts to streamline fiscal measures and align with international economic standards.

Fibre2Fashion News Desk (DR)