Govt may go harsh on tax rebate

The government is likely to be harsh on the tax rebate facilities in the budget for next fiscal year.
National Board of Revenue (NBR) sources said they have got the green signal from the finance ministry in this regard and are working accordingly.
As per the existing laws, a five-year tax holiday is applicable for the industries set up in Dhaka and Chittagong divisions (excluding three hill districts of Chittagong division), while a 7-year tax holiday applicable for industries set up in Khulna, Sylhet, Barisal and Rajshahi divisions and the three hill districts in Chitttagong division.
Besides, the government through more than 200 SROs had also given tax rebates to certain industries, different sectors and even in case of some individual undertakings.
Finance Minister AMA Muhith during a visit to the NBR on April 21 was also critical about the huge number of tax rebates.
“Tax rebates is a jungle; there are so many rebates. This needs to be rationalised to help boost the government's revenue income,” he said.
The NBR sources said that after getting the green signal from the finance minister they have started their work to sort out the sectors and industries from which tax rebates could be removed.