National Board of Revenue on Monday issued a clarification on its latest statutory regulatory order regarding reduction of source tax on export earnings saying that the new rate would be effective from January 1, the date of issuance of the SRO.
NBR published the clarification on the SRO issued on January 1 on its web site and informed the Bangladesh Bank governor and chief executive officers and managing directors of all other commercial banks about the effectiveness of the reduced tax rate.
Income tax wing of NBR issued the clarification following confusion among banks on the date of effectiveness of the reduced tax rate.
NBR on January 1 reduced the source tax on export proceeds to 0.25 per cent for all sectors including readymade garments, but excluding jute, from 0.60 per cent amending a SRO dated September 5.
NBR did not mention the date when the rate would come into effect in the new SRO, which created confusion among banks which deduct the tax while crediting the export earnings to exporters’ accounts.
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