5% tax at source for family savings certificate up to Tk 5 lakh: Finance minister

Five per cent tax at source will be applicable for family savings certificate for up to Tk 5 lakh investment, Finance Minister AHM Mustafa Kamal today said.

Meanwhile, for investment above Tk 5lakh on family savings certificate the tax at source will be ten per cent, Mustafa Kamal said at a press briefing at the secretariat this afternoon.

The decision was taken today considering the fixed income population as they would be the ones who are most affected by this change, he added.

An amended circular will be handed out in this regard.

In the budget for fiscal 2019-20, the government imposed a 5 percent tax at source on the profit on savings certificate along with the previous five percent.

Though the government has not completed the official process of providing incentive to remitters, the banks will pay an additional 2 per cent to the remitters starting from July 1, the minister said.

The initiative has been taken to encourage the inflow of remittance through legal channels, he added.

Source: thedailystar