Tax-free savings

Last year, the government imposed a tax on return on investment in Pensioners’ Benefit Account and Behbood Savings Certificates. These two schemes were originally launched as a welfare measure for pensioners, senior citizens and widows to help them deposit their lifetime savings in these schemes and earn a decent amount of profit every month.

The rate of income tax on these profits is higher than that imposed on the salaried class. In other words, one has to pay more taxes after retirement. In the present age, where prices are skyrocketing and where unmatched inflation has made it difficult for people to make ends meet, the authorities should consider exempting these two schemes from any kind of taxes to provide relief to senior citizens and pensioners.

S A Siddiqi

Islamabad