Grameen Bank granted tax relief to end discrimination, NBR explains
Founded by Muhammad Yunus, who currently serves as the chief adviser of the interim government, Grameen Bank has enjoyed tax exemption since its establishment in 1983, but these benefits were halted in 2020.
The National Board of Revenue (NBR) today said it waived tax for Grameen Bank for the next five years, until 31 December 2029, to eliminate existing discrimination because other institutions operating homogeneous microcredit programmes similar to Grameen are enjoying the tax benefits.
Founded by Muhammad Yunus, who currently serves as the chief adviser of the interim government, Grameen Bank has enjoyed tax exemption since its establishment in 1983, but these benefits were halted in 2020.
Yunus was awarded the Nobel Peace Prize in 2006 primarily for his work with Grameen Bank and his pioneering role in the field of microfinance.
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The tax exemption was reinstated on 10 October 2024, through a statutory order after a four-year suspension. The waiver is subject to certain conditions but the NBR did not specify the details of these conditions.
The bank will still be required to submit annual income tax returns.
According to the press release, since the inception of Grameen Bank, the income tax was waived on any income of the said institution, exemption from paying super tax or business profit tax.
Established through the Grameen Bank Ordinance, 1983 and the subsequent Grameen Bank Act, 2013, Grameen Bank is not a scheduled bank and the institution primarily operates microcredit activities, the NBR press release said.
It also stated that Grameen Bank does not receive the same tax exemption under the Income Tax Act, 2023, despite offering similar services, such as microcredit, solely because it is not registered with the Microcredit Regulatory Authority.
