Tax on local medical expenses

OTHER than a few top executives, most employees in Bangladesh get low remunerations from their employers. During the last year some top executives of private commercial banks and non banking financial institutions took more than Tk. 1.0 million from their offices as overseas medical expenditure for themselves and their family members. The decision makers of the government did not consider it fair and to impose a kind of control over it, they proposed a tax on it. In the 2014-15 budget, tax was imposed on medical expenses in excess of Tk. 60,000 in a financial year. The provision is still in force. Meanwhile cost of medical treatment in the country has increased exorbitantly and it is very difficult for most employees to bear such expenses from their salaries. In a situation like this, provision of tax on medical expenditure needs to be amended. Medical expense of an employee incurred in Bangladesh should be tax-free. It would reduce financial burden of employees. Only overseas medical expense may be taxable.

Md. Ashraf Hossain

120, Cemtral Bashabo, Dhaka-1214

[email protected]