NBR to Reduce Export Tax Benefits Amid IMF Revenue Target Pressure

• NBR plans to reduce tax exemptions for export-oriented sectors to meet IMF revenue targets.
• Current lower tax rates for industries like garments, footwear, and frozen foods may increase.
• The plan is in early stages and will be discussed with Finance Adviser in May.
• Exporters are concerned about competitiveness due to potential tax changes.
• Economists suggest better revenue collection and anti-corruption measures instead.
• Planned tax cutbacks will be phased, with some exemptions expiring or curtailed.
• Textile exporters’ tax break expiring in June may not be extended.
• Readymade garment sector exemptions until 2028 might be shortened.
• Other industries like jute and poultry may see gradual tax rate increases.
• NBR aims to unify all exporters under a single tax structure.
• Tax exemptions cost the exchequer Tk 163,000 crore this fiscal year.
• NBR needs to collect Tk 4.55 lakh crore in 2024–25 to meet IMF conditions.
• Revenue growth was only 1.7 percent by February, below the target.
• NBR increased VAT and supplementary duties on nearly 100 goods to raise additional revenue.

Source: thedailystar.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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