The National Board of Revenue (NBR) has clarified that the rate of tax at source on profits earned from investments up to Tk5 lakh in savings certificates is 5%. At the same time, it has been informed that no tax at source will be applicable on profits from pensioner savings certificates up to Tk5 lakh, as before. For a long time, savings certificate investors have been complaining that in many cases, tax at source is being deducted at 10% even on interest on investments up to Tk5 lakh. Currently, there are four types of savings certificates in operation under the National Savings Department—Family Savings Certificate, Pensioner Savings Certificate, Five-Year Bangladesh Savings Certificate, and Quarterly Profit-Based Savings Certificate. Of these, Family Savings Certificate is reserved only for women, while the remaining three types of savings certificates can be invested in by individuals and various institutions.
