DOT Desk: The National Board of Revenue (NBR) is considering extending the tax exemption on foreign loan interest payments from February 2024 to December 2024,report TBS.
In a circular on 28 November, the NBR exempted 20% tax on interest payment of foreign loans until 28 February 2024. It is now considering extending the exemption to December 2024 in order to provide support to businesses that are struggling in the current economic situation amid the dollar crisis, said officials concerned.
The revenue board is going to issue an order soon on the extension of the tax exemption, they said. “This is a direct subsidy from the government to foreign loan borrowers,” a senior NBR tax official, who preferred not to be named, told The Business Standard. “This will allow businesses to borrow foreign currency without hesitation for the next year.” Experts have welcomed the NBR’s plan. Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, told TBS, “The previous exemption, which was for only three months, was not very beneficial.