Which sectors receive highest tax exemptions?
An NBR report shows that tax exemptions were granted across around 13 sectors for companies and firms in FY23.
Despite a concerted effort by the National Board of Revenue to tighten the belt on tax relief, certain sectors continue to receive massive financial cushions.
According to the NBR's latest Tax Expenditure Report for FY23, the microcredit and social welfare sectors are the largest beneficiaries of tax exemptions in the country.
The report shows that tax exemptions were granted across around 13 sectors for companies and firms in FY23.
Companies and firms received Tk73,989 crore in exemptions, while individuals received Tk33,143 crore.
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Among sectors, microcredit and social welfare programmes received the largest exemption at Tk12,589 crore, followed by the power and energy sector with Tk7,987 crore.
Other major beneficiaries included share capital gains, garment and textile industries, salaries, economic zones and hi-tech parks, poultry and fisheries, dividends, non-garment exports, export cash incentives, information technology and software, and education.
Smaller sectors collectively received more than Tk53,000 crore in exemptions during that fiscal year.
For individuals, salary income accounted for the largest single exemption at Tk5,325 crore, followed by benefits related to poultry and fisheries, capital gains from shares and other categories.
