Tax breaks for foreign donations to BRAC: Reward for role in July-August 24?

Special Correspondent
Dhaka, June 14, 2026

The Ministry of Finance of the Government of Bangladesh issued a gazette notification on June 8 granting tax exemption facilities to 11 organizations, including BRAC, one of the world’s largest non-governmental development organizations.

According to the notification, the exemption will remain in effect from July 1, 2026, to June 30, 2030. However, the timing and context of the decision have raised questions, with some observers asking whether the move is purely administrative or a form of recognition for BRAC’s role during the July–August events.

Allegations Regarding Role in July Movement

According to a previously published investigative report by BDDigest, BRAC University allegedly played an active role during the anti-discrimination movement in July–August 2024. The report claims that the university was instrumental in mobilizing private universities to participate in the movement and that BRAC authorities provided direct instructions and support to sustain protests on July 18.

The report further claims that BRAC University Registrar Dr. David Dowland visited protest sites and expressed solidarity with students, allegedly assuring that gates would be opened in case of attacks.

It also alleges that BRAC’s Executive Director Asif Saleh instructed students in a virtual meeting on July 17 to continue the movement. According to one teacher cited in the report, Saleh said he had received guidance after meetings with officials from the Open Society Foundation and USAID regarding continuing the protests.

Foreign Funding Claims

The report also references significant foreign funding to BRAC University, claiming it has received approximately $34 million in support from USAID, including $18 million in 2024 alone—equivalent to about Tk 2 billion.

It further claims that BRAC University became a partner in a $1 billion fund of the Open Society Foundation in 2020.

The report notes that the Trump administration previously labeled several USAID projects in different countries as potential tools for political destabilization.

Debate Over Tax Exemption

The total national budget for the 2025–26 fiscal year stands at Tk 7.9 trillion and is projected to exceed Tk 9.5 trillion in the next fiscal year, with increasing pressure on revenue collection. In this context, decisions such as imposing examination fees in primary schools have already sparked debate over financial burdens on citizens.

Against this backdrop, critics question whether granting tax exemption to a large international NGO funded by foreign donations aligns with national fiscal priorities.

Policy Decision or Political Gesture?

Other organizations included in the tax exemption list include Ramakrishna Mission, Bangladesh Thalassaemia Samity, and Chattogram Maa-O-Shishu Hospital—institutions that operate with limited resources in public service delivery.

Critics argue that placing BRAC, a globally networked billion-dollar institution, alongside smaller charitable organizations raises questions of fairness and policy logic.

Some experts suggest that the timing of granting tax benefits shortly after the alleged role of certain organizations in political events raises concerns about whether the decision is purely policy-driven or influenced by political gratitude.

The government has yet to provide an official response addressing these questions.