A few years ago, a group of top executives of private commercial banks and non-banking financial institutions received more than Tk 1 million from their employers as overseas medical expenditure for themselves and their family members. The government considered this unfair. In order to control such hefty expenditure, the government proposed taxes on medical expenses. In the budget of 2014-15, tax was imposed on medical expenditures of over Tk 60,000 a year. The provision is still in force now.

Over the years, cost of medical treatment has increased exponentially in Bangladesh. It is very difficult for an average employee to bear medical expenses from their own pocket. In case of a major operation, for example, it often costs thousands of taka even in Bangladesh. Therefore, it is unfair that one will have to pay taxes while receiving medical provisions from their employers.

Md Ashraf Hossain, By e-mail