The burden of tax on middle income groups

THE National Board of Revenue (NBR) has recently imposed 10% annual income tax on the interest of all types of savings certificates as a measure to strengthen and broaden its tax net. As citizens of a country yet to become industrialised, majority Bangladeshis are in the middle income group. Most of these middle income people earn their livelihood from service and largely depend on their fixed earnings from their public or private jobs. These jobs ensure them earnings which are barely enough for frugal living. Some people of this group, over the time have inherited some ancestral property or money from their forefathers. With this money or earning from property they keep fixed deposits with banks or buy various types of saving certificates. They receive is a certain percentage of interest from the banks, which somewhat enables them to make a better living. But with the sudden introduction of 10% income tax on all sorts of savings certificates by the NBR, their anxiety has definitely increased a bit more. Coming in the wake of increased prices of essentials, the imposed income tax has actually become a burden on the middle income people of our country.
Sadiq Rahim
29/2/3 Babar Road (Shantiniketan)
Block-F, Flat-6B, Mohammadpur,
Dhaka-1207.