Ceiling on deduction of tax set to go
Sunday, 13 June 2010
FE Report
The existing ceiling on deduction of tax at source on interest gains from national savings certificates and post-office savings bank is set to go.
The Finance Bill 2010, which was placed Thursday before Parliament by Finance Minister AMA Muhith, proposed withdrawal of the minimum tax-exemption ceiling of Tk 150,000 on interest gains from savings bank and post-office savings certificates.
The Finance Bill also proposed withdrawal of the existing tax-exemption facility on the interest gains from pensioners' savings certificates.
On July 1, 2007, the government imposed a 10 per cent tax at source on a minimum Tk 25,000 worth of interest to be gained from the government's existing savings certificates and other investment bonds.
Later, it raised the tax-exemption ceiling to Tk 150,000 following demands and strong criticism made by investors and experts.
The imposing of such tax had not only resulted in huge withdrawal of investment from the systems, but also affected the normal investment growth under the savings tools, official sources said.
The existing ceiling on deduction of tax at source on interest gains from national savings certificates and post-office savings bank is set to go.
The Finance Bill 2010, which was placed Thursday before Parliament by Finance Minister AMA Muhith, proposed withdrawal of the minimum tax-exemption ceiling of Tk 150,000 on interest gains from savings bank and post-office savings certificates.
The Finance Bill also proposed withdrawal of the existing tax-exemption facility on the interest gains from pensioners' savings certificates.
On July 1, 2007, the government imposed a 10 per cent tax at source on a minimum Tk 25,000 worth of interest to be gained from the government's existing savings certificates and other investment bonds.
Later, it raised the tax-exemption ceiling to Tk 150,000 following demands and strong criticism made by investors and experts.
The imposing of such tax had not only resulted in huge withdrawal of investment from the systems, but also affected the normal investment growth under the savings tools, official sources said.