Bangladesh’s National Board of Revenue (NBR) reported that the government granted tax exemptions totaling Tk 1,07,132 crore in the 2022–23 fiscal year, equivalent to 2.39 percent of the country’s GDP. The report, released on Thursday, revealed that the value of these exemptions was nearly 99 percent of the revenue collected from direct taxes. The data highlights how tax holidays, rebates, and exemptions have significantly reduced the amount of revenue reaching the national treasury.

According to the NBR report, more than two-thirds of the total tax exemptions were provided to businesses and institutions. Corporate tax exemptions amounted to Tk 73,989 crore, or 69 percent of the total, mainly benefiting sectors such as microfinance, social welfare, power and energy, and the ready-made garment industry. Personal income tax exemptions totaled Tk 33,143 crore, with the largest share going to salaried income.

The report recommended a phased withdrawal of unnecessary tax exemptions and aligning incentives with national priorities such as export diversification, green economy, SME growth, gender equality, and regional balance to enhance revenue collection without raising tax rates.