B Mirror Desk : The process for general customers to purchase savings certificates is being simplified. As in the past, the opportunity to acquire savings certificates will be available in the upcoming fiscal year’s budget, requiring only a Tax Identification Number (TIN).
The current requirement to provide proof of income tax return (PSR) when purchasing savings certificates may be removed. This change could be announced by Financial Advisor Salehuddin Ahmed during the budget speech, allowing interested customers to buy savings certificates by presenting only their TIN certificate, as was previously the case. Currently, individuals wishing to purchase savings certificates exceeding five lakh taka must submit proof of their income tax return from the previous year, which poses challenges for those with limited and middle incomes.
Many lower-middle-class and middle-class families, despite having no taxable income, are compelled to file returns annually simply due to their purchase of savings certificates. Additionally, numerous TIN holders do not file returns in the country because the process is cumbersome. At present, the National Savings Department offers four types of savings certificates: the five-year Bangladesh Savings Certificate, three-month profit-based savings certificates, family savings certificates, and pensioner savings certificates, with family savings certificates being the most sought after, exclusively available for women.
Over the past year, the sale of savings certificates has significantly declined due to high inflation, while the trend of redeeming these certificates has notably increased. Consequently, the government’s net debt from savings certificates has turned negative.
The National Savings Department reports that the government aims to sell savings certificates totaling Tk 83,500 crore in the fiscal year 2024-25. So far, Tk 36,463 crore has been sold in the first seven months (July-January), while Tk 43,476 crore has been redeemed during the same period. This has resulted in a net debt exceeding 7 thousand crore taka in the negative for the government from savings certificates in these seven months. Instead of borrowing from these certificates, the government’s welfare expenditures have risen as more individuals are cashing in their savings. Experts indicate that the high inflation has diminished people’s inclination to save over the past year and a half, prompting many to redeem their savings certificates to cover extra expenses.
According to NBR sources, the government is contemplating removing the requirement to file tax returns to ease the process for the general public when purchasing savings certificates. This is particularly relevant for various societal groups, including the lower middle class, retirees, widows, and women, many of whom lack taxable income yet face the annual burden of filing returns due to NBR regulations. Additionally, filing a proof of return or PSR is currently mandatory for accessing 45 government and private services, a move by the NBR aimed at increasing the number of return filers.
