NBR revokes tax rebate on donations to five more trusts, foundations
The revenue board plans to remove tax rebate benefits for several more institutions, trusts, and foundations
The National Board of Revenue (NBR) has revoked the tax rebate benefit on donations to five more trusts and foundations, some of which are affiliated with the Awami League, under separate statutory regulatory orders (SROs) issued between 2013 and 2019.
According to an NBR order issued Tuesday (3 December), the affected institutions include Shurer Dhara, a cultural and music organisation founded by singer Rezwana Choudhury Bannya; Lalit Mohan Dhanbati Memorial Foundation; Wadud Bhuyan Scholarship Trust; Bangabandhu Sheikh Mujibur Rahman Memorial Trust; the Centre for Research and Information (CRI), a research organisation aligned with the Awami League; and the President Abdul Hamid Foundation, linked to the former president.
In November, the NBR had similarly withdrawn tax rebate facilities for donations to other national-level institutions established to honour the memory of Sheikh Mujibur Rahman.
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According to NBR sources, the revenue board plans to remove tax rebate benefits for several more institutions, trusts, and foundations.
Muhammad Abdul Mazid, former NBR chairman, earlier told The Business Standard, "Tax rebate benefits have often been misused, with donations made in the name of such charities or trusts, undermining their intended purpose."
Individuals or organisations can claim tax rebates on donations of up to 10% of their total taxable income, according to the existing Income Tax Act.
However, with the cancellation of these SROs, donations to these organisations will no longer be tax-exempted.
