How the government can reduce our financial burdens

Bangladesh has achieved drastic poverty reduction within 45 years of its independence. The government, NGOs and private sectors are responsible for such commendable feats.  

However, more can be done to help out financially weak citizens. Source tax provision on fixed deposit income irrespective of income generation needs review. Bangladesh is lately experiencing 6 percent inflation - when the rate of inflation is deducted from interest income in real terms, depositors get no income at all from fixed deposits. Many people live on their small fixed deposits in banks or financial institutions. It becomes difficult for them to live on deposit bearing income under such circumstances. 

The government can help them by withdrawing tax at source on deposit of up to BDT 1 million fixed deposits.

Md. Ashraf Hossain

On email