NBR exempts Aga Khan agency from Tk7.81 lakh VAT

The National Board of Revenue (NBR) has exempted Aga Khan Development Network (AKDN) from paying Value Added Tax (VAT) of Tk 7.81 lakh.

The VAT was imposed on them for the service they had provided from April 1 to June 30 last year. 

The exemption was given to 93 companies of AKDN, a group of non-denominational development agencies founded by Aga Khan that work primarily in the poorest parts of Asia and Africa.

The NBR on January 5 issued a Statutory Regulatory Order (SRO) in this regard signed by its VAT wing’s Second Secretary Kazi Rezaul Hasan.

The SRO said AKDN had provided services worth Tk 79.67 lakh in that period. It said it is important for AKDN and the Bangladesh government to maintain a bright image and a strong relationship.

As per the protocol between AKDN and the Bangladesh government, the latter has promised to waive local taxes levied on the purchase of goods/services locally and internationally by the AKDN representative office and its non-profit agencies, the SRO further said.

The NBR has allowed the exemption under Section 126 of the Value Added Tax and Supplementary Duty
Act 2012.

As per Section 46 of the act, the VAT paid on materials used in the products supplied by the supplier concerned cannot be accepted, the SRO said.