In December 2018, the government was able to keep over Tk 33.31 billion after repaying the customers of savings certificates. Analyst Zaid Bakht says the government is now “paying the price” for vigorously selling savings certificates with high interest rates. And the slump in the share market made the savings certificates the most lucrative investment in the country, leading to huge government borrowings. In the budget for 2019-20, the government doubled the tax at source on interest earnings from savings certificates to 10 percent regardless the amount of investment. “Now the government is repaying the customers of savings certificates with bank loans,” Bakht pointed out.

Source: bd News24 February 07, 2020 23:48 UTC