JULY MARTYRS’ MEMORIAL FOUNDATIONNBR to exempt tax on donations

The National Board of Revenue (NBR) is set to exempt income tax on both local and foreign donations made to the July Martyrs’ Memorial Foundation, established in memory of those affected during the student-led July uprising.

The exemption will apply to all donations received by the foundation until June 2029, an NBR official said on Thursday.

The exchequer will soon issue a circular in this regard, he said.

The decision was taken at a meeting held Tuesday, with NBR Chairman Abdur Rahman Khan in the chair.

The official explained that the July Martyrs’ Memorial Foundation aims to support the welfare of those martyred, injured, or disabled during the July-August student movement. The foundation provides financial and humanitarian aid, training, employment, rehabilitation, and medical assistance for the affected individuals and their families.

“To facilitate these welfare activities, the tax authority has decided to exempt income tax on donations, institutional CSR contributions, and Zakat provided by domestic and foreign organisations or individual taxpayers. Moreover, all income of the foundation will remain tax-free until 30 June 2029,” he stated.

The official also emphasised the national significance of the martyrs and injured individuals from the uprising, urging all organisations, including the NBR, to contribute to their welfare.

As per the Income Tax Act 2023, donations, CSR contributions, and Zakat made to the foundation will be deductible from its total income.

The NBR, however, has decided to revoke the provision allowing tax rebates on donations made to national institutions named after Sheikh Mujibur Rahman.

A statutory regulatory order (SRO) to this effect will be issued soon.

Previously, taxpayers were entitled to income tax rebates for contributions made to 20 specified sectors, including national institutions named after Sheikh Mujibur Rahman.