Bangladesh Bank yesterday asked banks to comply with the revenue authority's rule to pay 10 percent source tax on their commission earnings from sales of government issued-prize bonds and savings certificates.
The National Board of Revenue said the selling of prize bonds and savings certificates is a service and 10 percent source tax is payable on commission earnings from the service as per income tax law.
The provision of source tax on commission earnings from such service was payable since July 2011, according to the NBR.
The central bank, citing the NBR letter issued in March, asked banks to ensure deduction of 10 percent tax at source on the commission earnings from sales of savings certificates and prize bonds at all their branches.