NBR and Bangladesh Bank Deny 7.5% Levy on Freelancers

A widespread debate has emerged on social media following allegations that a 7.5 percent withholding tax is being deducted from the foreign earnings and remittances of freelancers and content creators. The issue has drawn concern from many individuals, including Sarjis Alam. However, both the National Board of Revenue (NBR) and Bangladesh Bank have clarified that there is no legal provision or directive authorizing such deductions from freelance income or remittances.

In a post published on his verified Facebook page on Thursday, June 4, Sarjis Alam wrote that Prime Minister Tarique Rahman had recently assured a content creator that the proposed 7.5 percent tax on freelancers and content creators would not be imposed. Despite that assurance, however, complaints have surfaced alleging that banks are still deducting money at that rate from certain accounts.

Along with his post, Sarjis Alam shared a screenshot of a banking transaction showing that after BDT 23,150.79 was credited to an account as “Inward Commercial Remittance,” BDT 1,736.31—approximately 7.5 percent of the total amount—was deducted under the description “Debit Tax Deduction at Source.”

Referring to the screenshot, he questioned whether the Prime Minister’s directive was being implemented, whether the decision had yet to take effect, or whether it would be implemented at all. He also called on the government to provide a clear and prompt explanation regarding the matter.

Sarjis Alam further argued that imposing such a tax on individuals who earn their livelihoods through freelancing and content creation would be difficult to justify, although a graduated tax structure for higher-income earners could be considered.

Responding to the allegations circulating on social media, NBR Chairman Abdur Rahman Khan stated, “There is no provision for deducting tax from freelancers’ earnings or remittances. The information is completely incorrect.”

Meanwhile, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said, “Tax-related matters are determined by the National Board of Revenue. The NBR is in the best position to comment on this issue. I have never heard of any directive authorizing tax deductions from freelance income or remittances.”

Earlier, Prime Minister Tarique Rahman had expressed opposition to the proposed 7.5 percent tax on the earnings of freelancers and content creators. During a special meeting at the Secretariat on June 1 with Jewel Rana, founder of the popular Facebook page Chitta Media, he reportedly instructed relevant officials to review the matter after being asked directly about the rumored tax.

Speaking to journalists after the meeting, Jewel Rana said the Prime Minister had emphasized the importance of encouraging young people to engage in digital marketing and international online work. According to Rana, Tarique Rahman remarked that freelancers bring foreign currency into the country and play an important role in the economy, making additional financial burdens inappropriate.

However, despite those remarks, no official gazette notification or circular has yet been issued by the relevant authorities.

As a result, freelancers and content creators across the country are calling for a formal clarification from the government to verify the authenticity of the circulating screenshots, address allegations of tax deductions, and eliminate the confusion that has spread across social media.

/DBTech/BTO/MUM/OR/