NBR, BB to talk tax on income from savings tools

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FE Report
The National Board of Revenue (NBR) will sit with the senior officials of Bangladesh Bank (BB) Sunday next to remove the confusions arising from its directive relating to the deduction of 10 per cent tax at source from the interest income from saving instruments.
The tax policy member of NBR, Ali Ahmed, will attend the meeting to clarify the NBR's order in this regard. BB deputy governor Zilaul Hassan Siddiqui and chief executives of the Banks in Dhaka will present at the meeting.
While talking to the FE, Ali Ahmed said: "We will sit with the senior central bank officials to dispel the confusions relating to deduction of 10 per cent tax at source from the interest income of saving instruments from July 01, 2007 and beyond."
Some banks have been deducting the tax from the interest income of saving instruments since 2004, which has created such confusion and made the NBR concerned about, he said.
The NBR has made it clear that the investors will not have to pay tax on interest income generated during the period from July 2004 to June 30, 2007.
"I will visit the banks of divisional cities to clarify the issue and remove confusion about the NBR's order," he said.
The NBR issued the order on July 10 last imposing 10 per cent tax, which is deductible at source on annual interest income exceeding Tk 25,000 from savings instruments.