Income from ICB Unit Fund to receive tax-free benefits
Chairman says the move will enable ICB provide higher dividends
Income from the Investment Corporation of Bangladesh (ICB) Unit Fund, an open ended mutual fund, will receive tax waiver, according to a statutory regulatory order issued by the National Board of Revenue on Monday.
The ICB is an investment bank operating in Bangladesh and is one of the largest investors in securities. The corporation collects funds from various investors and invests them in the share market.
The fund has enjoyed tax exemptions since its inception. However, under the latest Income Tax Act of 2023, it came under the tax net, with a tax rate of 25%.
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Now, after one year, the NBR reinstates the tax exemption, which has been welcomed by industry insiders.
"It's a welcome move, and we appreciate it," Professor Abu Ahmed, chairman of the ICB, told The Business Standard.
He said, "Since its inception, income from the ICB Unit Fund has enjoyed tax-free status, but we don't know why the NBR had imposed a 25% tax in the new Income Tax Act."
"The tax waiver will enable ICB to provide higher dividends to its investors," he added.
According to the ICB website, its objectives are to encourage and broaden the base of investments, develop the capital market, and mobilise savings.
