Tax at source on profit earnings from various savings instruments of the government has increased by 12 per cent in the first four months in the current fiscal year (FY) over that of the corresponding period in the last one, according to the Directorate of National Savings (DNS) figures.
"The government's collection of taxes from the savings bonds and certificates rose because of increased sales across the country," a high official at DNS told the FE last week.
The rise has been attributed to more sales of savings instruments, a high official at the Bangladesh Bank (BB) said.
The net investment in national savings certificates in the first five months of the current fiscal 2013-`14 stood at Tk 33.69 billion, while it was Tk 3.85 billion in the same period of the FY `13, he mentioned.
Tax on earnings from savings instruments jumped to Tk 960.7 million in four months of FY 2013-14, up from Tk 859.4 million in the same period of the previous fiscal, DNS figures showed.
The government has set a net investment target of Tk 49.71 billion for the FY 2013-`14. It was Tk 74 billion in net investment in the savings certificates for FY 2012-`13.
The savings certificates worth Tk 90.13 billion were sold during the first five months of FY 2013-`14, whereas the total sales of saving tools in the same period in FY 2012-`13 were Tk 99.11 billion.
The government increased the rates of interest on all savings instruments to help boost its sales on February 23, 2012, with effect from March 1 that year, he said.
Tax at source on the profits from savings instruments had declined in the last fiscal year as the government reduced the tax rate on profit to 5.0 per cent from 10 per cent on July 1, 2011.
The tax on the profit earnings from savings instruments decreased to Tk 2.09 billion in FY 2011-12 from Tk 3.99 billion in FY 2010-11.
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