Income tax on medical bills not justified

In the finance bill (budget) 2014-15 Bangladesh government has introduced income tax on medical bills above Tk 60,000 per annum reimbursed by employer to any employee. That is, when one employee gets medical expenditure for oneself or for one's family members from one's employer that exceeds Taka 60,000 in a financial year income tax is payable on the amount.

When an employee or his family member gets ill, he or she has to spend money for treatment. Everyone knows it is very much expensive to get medical service and medicine for treatment now-a-days. In Bangladesh, honest service holders are the most vulnerable section of population from the point of view of financial strength. A small businessperson can build one or more house in his lifetime but most of the honest employee cannot build a house even serving 30-35 years mainly owing to very poor salary he or she gets. To give some relief as well as to reduce total expenditure employers usually do not pay handsome medical allowance monthly. They fix a limit for each graded employee and put condition that only when an employee or family member will need medical aid that will be reimbursed up to that pre-fixed limit. When medical aid will not be necessary no money will be given even if there is underutilised limit. Critical sickness causes huge medical expenditure along with tremendous agony and according to the tax provision, income tax will be imposed on that event.

The imposition of income tax on medical expenditure over Tk 60,000 is not rational at all. Therefore, I like to urge the government to withdraw income tax on medical facilities.

mah120cb@yahoo.com