Grameen Bank’s tax waiver extended by five years

The National Board of Revenue has extended Grameen Bank’s tax waiver by another five years to December 2020.

Grameen Bank has enjoyed tax exemption since its inception in 1983 as its activities are completely focused on reducing poverty.

The benefit is renewed every five years, and the previous waiver expired in December 2015.

Subsequently, Grameen Bank last year requested the tax authority for an extension. The privilege will be effective from January 1, 2016, but the Nobel Prize-winning microcredit organisation will have to submit income tax returns to avail the benefit, according to a notice issued last week.

The bank, founded by Nobel Laureate Prof Muhammad Yunus, has lifted millions out of poverty through collateral-free loans, and its model has been replicated in many countries.

Grameen Bank provides small business loans to poor individuals, the majority of whom have never had a bank account and certainly would not be considered suitable borrowers by mainstream banks.