National
NBR Chief Announces ‘No tax exemption on offshore loan interest after Dec’
The National Board of Revenue (NBR) Chairman, Abu Hena Md Rahmatul Muneem, announced the discontinuation of tax exemption on foreign loan interest after this year. Addressing offshore borrowers at a pre-budget meeting in the capital, Muneem urged them to prepare for tax payments, emphasizing that the concession provided until December would cease thereafter.
“We have provided you with breathing space until December. After this, there will be no such concession. Begin negotiations accordingly,” warned the NBR chairman during the meeting held at the NBR Building in Agargaon.
Muneem emphasized that Bangladesh aims to transition from being a tax-evading haven and is on track to graduate to a developing country. In the fiscal year 2023-24 budget, the NBR had imposed a 20% tax on interest payments for offshore loans from July. This led businesses to shy away from new loans, focusing instead on repaying existing ones, resulting in a decline in short-term foreign loans and a reduction in the country’s forex reserves.
The tax primarily targeted offshore bank interest and was intended to spare local borrowers. However, reports from bank sources suggested that foreign lenders were indirectly passing the tax burden onto local borrowers. In response to concerns, the NBR introduced an exemption facility until February, later extending it to 31 December 2024 to boost dollar inflow.
During the pre-budget meeting, the Bangladesh Export Processing Zone Authority (BEPZA) sought various tax benefits, prompting the NBR chairman to highlight concerns about the misuse of facilities granted to industries under BEZA. Muneem stated, “I can’t take more risks by giving more benefits,” expressing reluctance in the face of evidence indicating misuse.
Representatives from organizations such as Business Initiative Leading Development (BUILD) and Bangladesh Hi-tech Park Authority presented proposals during the meeting. Additionally, the NBR engaged with the Bangladesh China Chamber of Commerce and Industry (BCCCI), India Bangladesh Chamber of Commerce and Industry (IBCCI), Women Entrepreneurs Network for Development Association (WEND), Anti-Tobacco Media Alliance (ATMA), and other organizations on the day.
Leaders of the quota reform movement have resolutely refused to negotiate with the government, insisting that their movement will persist until their demands are met.
In a Facebook post, Hasnat Abdullah, a coordinator of the movement, declared, “No discussion through stepping onto blood.”
Asif Mahmud, another prominent leader, echoed this sentiment, stating, “There can be no dialogue with bullets. I would prefer death over this betrayal.”
He further elaborated, “On one side, there are bullets. On the other, there is a call for dialogue. We can’t sit for dialogue while stepping onto the blood of our brothers.”
Earlier, leaders of the quota reform movement accused the government of escalating the law and order situation towards violence, asserting that their movement was peaceful until the government’s intervention.
Vowing to continue their struggle, Asif Mahmud stated, “We will continue our protests till we achieve our demands for reformation of the quota system, reopening of the halls and campuses, making university campuses terror-free, withdrawing political forces from the campuses, and punishing the killers and attackers.”
He added, “The people of the country have encircled those who tried to corner us. No conspiracy will be able to derail our movement.”
Prime Minister Sheikh Hasina today urged both local and international investors to invest in the extraction of marine resources from Bangladesh’s extensive sea areas.
“In order to fortify the blue economy through the diverse utilization of our marine resources, I call upon local and foreign investors to seize the opportunity to invest in Bangladesh. This will enable us to harness more of our marine resources,” she announced.
The Prime Minister made these remarks during the inauguration of the Bangladesh International Aquaculture and Seafood Show-2024 at the Bangabandhu International Conference Centre (BICC) in Dhaka.
She emphasized the importance of adhering to proper standards in the collection, distribution, and processing of fish to boost exports, aiming to make fish the country’s second-largest source of foreign currency.
Sheikh Hasina pointed out that her government has made limited progress in harvesting fish and other sea resources from the deep sea due to a lack of interest from local investors.
“Therefore, we need foreign investment to advance in this area. This is the reality we must face,” she noted.
She also suggested that both local and foreign investors can collaborate in joint ventures or invest separately in this sector to achieve better results.
The Bangladesh Meteorological Department (BMD) has forecasted light to moderate and moderately heavy rainfall or thundershowers, accompanied by temporary gusty winds, across all eight divisions of the country over the next 24 hours, starting from 9 am today.
In its weather bulletin issued this morning, the BMD stated, “Light to moderate rain or thundershowers with temporary gusty wind is expected in a few places over Rangpur, Mymensingh, Chattogram, and Sylhet divisions. Additionally, one or two places in Rajshahi, Dhaka, Khulna, and Barisal divisions may experience similar conditions, with moderately heavy falls anticipated at several locations in Rangpur, Mymensingh, Chattogram, and Sylhet divisions.”
The bulletin also highlighted that the current mild heat wave sweeping across the Rangpur division and the districts of Tangail, Chuadanga, Rajshahi, Pabna, Bogra, and Netrokona may persist.
Daytime temperatures are expected to rise slightly, while nighttime temperatures are likely to remain nearly unchanged throughout the country.
On Wednesday, the highest recorded temperature was 36.7 degrees Celsius, observed in Rajshahi, Rangpur, and Rajarhat. The lowest temperature recorded today was 26.0 degrees Celsius, noted in Bandarban and Teknaf.
Over the last 24 hours, rainfall amounted to 16 mm in Bandarban.
For the capital, the sun will set at 6:48 pm today and rise at 5:21 am tomorrow.
