Tax exemptions revoked on donations to institutions named after Bangabandhu

The National Board of Revenue (NBR) has revoked the provision for income tax exemptions on donations made to national institutions named after Bangabandhu Sheikh Mujibur Rahman. 

The country’s central authority for tax administration issued a gazette notification in this regard on Thursday, a senior NBR official confirmed on Sunday.

The notification states that clause 15 of paragraph 2, part 3 of the Sixth Schedule of the Income Tax Act has been repealed.

Previously, the NBR had allowed tax exemptions for any amount of donations made by taxpayers to national-level institutions established in honour of Sheikh Mujibur Rahman.

During the nearly 16-year tenure of former prime minister Sheikh Hasina's government, many national-level institutions were established in Bangabandhu’s name. Individual taxpayers who donated to these institutions were eligible for tax relief.

Under sections 76 and 78 of the Income Tax Act, 2023, taxpayers could receive tax rebates or reduced taxes by donating or investing in 20 specific categories, including national institutions established in Bangabandhu’s memory. These donations previously qualified for tax relief under Section 78 of the act.