FBR directed to withdraw tax on widows, pensioners

ISLAMABAD - In a move to facilitate widows and pensioners, Finance Minister Ishaq Dar has directed the tax authorities to remove 10 percent income tax on profits received through two schemes of National Savings — Pensioners Benefit Account (PBA) and Behbood Savings Certificates (BSC).

Widows and pensioners are entitled to theses schemes, which are already exempted from the withholding tax.

The finance minister issued the directions to the Federal Board of Revenue (FBR) while heading a meeting to review the yearly performance of National Savings Organisation.

Dar told the meeting that taxes imposed on these schemes through some legal amendments to the Finance Act were unintentional.

Currently, holders of BSC receive profit at 9.36 percent annually, which was 14 percent during January 2014 to November 2014. The per month profit reduced to Rs780 from Rs1,170 on Rs100,000 deposit during the said period.

Director-General National Savings Zafar Masud apprised the meeting of organisation's performance in different fields, including automation, new products and facilities for customers.

The institution is also considering to issue Rs100,000 denomination bond after the successful launch of Rs40,000 Premium Prize Bond, besides other projects like ‘Shuhada Families Welfare Account,’ Overseas Pakistanis Savings Certificates and Islamic products are in the pipeline.