The government has taken a decision to cut 5 percent tax on the interest earnings from investment of up to Taka 5 lakh in savings certificates.

As per the gazette of the Internal Resource Division under the Finance Ministry, Bangladesh Bank (BB) today instructed all banks and Financial Institutions (FIs) to cut 5 percent tax instead of 10 percent on the interest earnings from the investment up to Taka 5 lakh.

However, there will be no change of 10 percent tax at source for the savings instruments over Taka 5 lakh.

In the budget for the fiscal 2019-20, the government doubled the tax at source on interest earnings from savings certificates to 10 percent.