NBR eases tax return requirements for loans, credit cards

The requirement to submit proof of tax returns has been waived for bank loans of up to Tk 20 million and credit card transactions of up to Tk 200,000 for students

Staff Correspondent
Published : 18 Sept 2022, 09:45 AM
Updated : 18 Sept 2022, 09:45 AM

The National Board of Revenue has eased the provision to submit income tax returns in order to apply for loans and credit cards.

In a notice on Sunday, the tax administration authority announced that individuals falling within the tax-free income threshold would not be required to submit proof of tax returns to banks to take out loans of up to Tk 20 million.

The requirement has also been waived for students making credit card transactions of up to Tk 200,000.

The exemptions will remain in effect until Jun 30, 2023.

In its budget for FY23, Bangladesh made it mandatory for individuals applying for loans worth Tk 500,000 and above, or credit cards, to submit proof of income tax returns to the banks.

The move caused reluctance among individual borrowers to seek bank loans, while there were also concerns about its implications on small and medium businesses.

Under the circumstances, bankers demanded that the requirement be relaxed for SME and consumer loans. Officials of the Association of Bankers, Bangladesh recently met with the finance minister and the NBR chairman to discuss the issue.

Toufique Imrose Khalidi
Editor-in-Chief and Publisher