NBR Considers Ending Tax Exemptions for IT Services

In the first seven months of FY 2024–25, Bangladesh’s budget deficit surged by 73.04% compared to the same period last year, reaching Tk 384.93 billion. Revenue collection stagnated, with tax revenue at just over 40% of the annual target, primarily from indirect taxes. Total expenditure stood at Tk 2.746 trillion against Tk 2.362 trillion in revenue.

Starlink has officially launched in Bangladesh, offering high-speed satellite internet with two packages: Residential at Tk6,000/month and Residential Lite at Tk4,200/month. A one-time setup cost of Tk47,000 is required. Users will get unlimited data with speeds up to 300 Mbps.

In a major reform move, the Bangladesh government has officially dissolved the National Board of Revenue (NBR) through an ordinance, replacing it with two new divisions—Revenue Policy and Revenue Administration—under the Ministry of Finance. This restructuring, enacted late Monday night with presidential approval

In a bid to boost revenue and reduce tax exemptions, the National Board of Revenue (NBR) is planning to impose a 2% Advance Income Tax (AIT) on around 200 previously duty-free imported items. This move is expected to generate an additional Tk2,000 crore but has drawn sharp criticism from businesses and consumer rights groups.

Starting fiscal year 2025–26, Bangladesh’s parliament will have exclusive authority over tax exemptions, ending the finance ministry and NBR’s discretionary powers. The new "Tax Exemption Policy and Management Framework" mandates that all exemptions—including income tax, VAT, and duty—require parliamentary approval, with temporary measures needing cabinet endorsement and a one-year limit. A five-year cap will apply to all first-time exemptions, countering indefinite waivers. The policy, aligned w

In 2023, tax evasion in Bangladesh reached Tk 226,236 crore, with corporate tax evasion alone accounting for approximately Tk 113,118 crore—about 50% of the total—according to a CPD study based on 103 listed companies.