Proposal to Count Tax Exemptions as Subsidies Raises Concerns

The National Board of Revenue (NBR) has formed a nine-member committee to develop a policy framework for tax expenditure, which includes tax subsidies such as rebates, discounts, exemptions, and reduced rates.

The interim government will abolish the rule canceling tenders with bids exceeding 10% of the estimated price to combat corruption, dismantle syndicates, and promote fair competition in public procurement. This decision, announced during a meeting chaired by Planning Adviser Wahiduddin Mahmud, aligns with World Bank conditions for budget support and aims to encourage new bidders.

The Planning Ministry's taskforce on sustainable development, led by KAS Murshid, former director general of BIDS, has drafted a report addressing economic challenges outlined in the recently published white paper. The report includes short and mid-term recommendations for achieving economic stability and moderate growth, set to be presented this month.

The National Board of Revenue (NBR) is set to launch a fully automated bonded-warehouse facility on 01 January 2025, streamlining paperless services for domestic exporters. The Bond Management Automation Project, which was initially launched in July 2017, has faced multiple extensions due to disruptions caused by the Covid-19 pandemic. The system aims to eliminate the misuse of bonded-warehouse facilities and reduce manual processes.

A government taskforce has decided to probe money laundering and other alleged misdeeds by 10 major business groups in Bangladesh. Ten separate inter-agency teams, comprising members from the Anti-Corruption Commission, National Board of Revenue, and Criminal Investigation Department, will be formed to investigate the allegations.

The National Board of Revenue (NBR) has removed all import taxes on sunflower and canola oils and reduced the VAT on their imports to 5 percent, aiming to boost supply and control rising edible oil prices. Effective until March 31 next year, this move is expected to reduce import costs by Tk 40-50 per litre.