• Saturday, Aug 15, 2020
  • Last Update : 01:54 am

Sales of savings instruments drops 76.43% in July-May of FY20

  • Published at 10:02 pm July 15th, 2020
Representational image of National Savings Certificate of Bangladesh Collected

The sales of saving instruments dropped drastically owing to the tightened rules and regulations relating to investment in saving certificates

The net sales of national savings certificates (NSC) fell by 76.43% in the first eleven months of the just-concluded fiscal year– July to May- thanks to the strict regulations of the government to lessen investment in high interest-bearing savings instruments.

Net sales of savings instruments fell by Tk35,702 crore year-on-year to Tk11,011 crore during the period (July-May) from Tk46,713crore in the same period of the FY19, according to the latest data from Bangladesh Bank.

The sales of saving instruments dropped drastically owing to the tightened rules and regulations relating to investment in saving certificates, according to experts.

Increase in tax on interest income from investment on savings instruments was also a reason for the fall in its sales during this period, they added.

The government in the budget for the previous (2019-20) fiscal year imposed a 5% tax at source on interest income from NSCs worth up to Tk5 lakh.

It also levied 10% tax at source for investment in schemes above Tk5 lakh.

According to new rules imposed by the government, those investing in the purchase of savings instruments need to submit their electronic taxpayer identification numbers (e-TIN) and national identity cards (NID).

If the amount is more than Tk1 lakh, they must pay the money through bank cheques.

To meet a portion of the budget deficit for the previous fiscal year, the borrowing target from savings certificates was set at Tk27,000 crore. However, the target was reduced drastically in the revised budget owing to a falling trend in NSC sales.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail