Despite making profit, Ansar-VDP Unnayan Bank has requested the government to exempt the bank from paying source tax and income tax and to consider the specialised bank as a non-taxable entity.
In a recent letter to the finance ministry, the bank said that it needed the exemption as it was running its activities by borrowing money from scheduled banks due to lack of paid-up capital.
In the letter, Ansar-VDP Unnayan Bank managing director Mohammad Jalaluddin also sought exemption from paying outstanding taxes accrued since the financial year 2002-2003 when the bank started to make profit.
The bank was established in 1996 with an authorised capital Tk 400 crore (25 per cent government share and 75 per cent Ansar-VDP share).
In the letter the bank said presently the institution was running its activities with the paid-up capital of only Tk 109.62 crore as the government paid Tk 75 crore out of Tk 100 crore and the bank raised capital only Tk 32.62 crore by selling shares to Ansar and VDP members in last 22 years against allocation of shares worth Tk 300 crore.
According to the letter, the bank incurred losses in its first seven years and it started making some profit from FY03.
The letter said that the non-scheduled bank was mainly involved in microcredit financial activities and the bank could get waiver from paying income tax as it was being operated like a cooperative society.
Due to lack of fund the bank is making re-investment of its profit instead of distributing the profit to its members and under the circumstances the bank has no ability to pay any tax, the letter said.
‘We requested the government to exempt the bank from paying taxes to protect the interest of poor Ansar and VDP members of the country and hopefully the government would take a positive decision,’ Jalaluddin told New Age on Sunday.
He said that the amount of accumulated tax would be Tk 35 crore and the bank had no ability to pay the amount.
‘We are trying to raise the bank’s paid-up capital to Tk 400 crore to make the bank vibrant and if the government does not accept our
request, the activities of the financial institution would be stopped,’ Jalaluddin said.
Financial Institutions Division secretary Md Eunusur Rahman was not available for comment.
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