Withdrawing income tax on medical expenses

In our budget for 2014-15, Bangladesh government has introduced income tax on medical expenditure above Tk. 60,000 per annum reimbursed to an employee by his/her employer. It means, when an employee gets reimbursement of his/her medical expenditure for self and/or family more than Tk. 60,000 in a year, income tax is to be paid by him/her on the amount.

An expenditure of over Tk. 60,000 per annum clearly indicates that a person or some one of his/her family was badly sick and was required to spend that amount of money for medical treatment. Everyone knows medical treatment these days is becoming increasingly expensive. In Bangladesh, service holders are the most vulnerable section of the population financially. A small business person can build one or more houses in his lifetime, but most of the service holders cannot think of it even after serving 30-35 years. Usually our employees are not well paid. But sometimes some of our employers come forward to reimburse the medical expenses of their employees when they are in trouble with fabulous bills. This is usually a one-off measure and no money is reimbursed when an employee or his/her family members do not fall sick.

So, considering the situation an employee is in when medical expenses for self and family exceed Tk. 60,000 in a year, I request the government to withdraw this provision and relieve the employee concerned of this extra burden.

Md. Ashraf Hossain

mah120cb@yahoo.com