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The National Board of Revenue (NBR) has exempted the Islamic Development Bank (IsDB) regional office in Dhaka from VAT payment in obtaining services and supply of products at local stage.
The Jeddah-based multilateral development bank would enjoy the exemption under a special order of the NBR, issued on January 10.
In the order, the NBR's Value Added Tax (VAT) Wing offered the exemption to the IsDB Dhaka office. The exemption came into effect from January 10.
The tax benefit was offered as a part of an agreement - 'The establishment of the country gateway office of the Islamic Development Bank Group in Bangladesh' - between the IsDB and the government on November 26, 2015.
Article-VIII of the agreement stipulated the provision of VAT exemption for the IsDB regional hub in Dhaka.
The NBR offered the VAT exemption as per the section 126, subsection (2) of the VAT and Supplementary Duty Act 2012.
Bangladesh became the IsDB member in 1974. Prime Minister Sheikh Hasina inaugurated its regional hub in Dhaka in September 2018.