The government has increased the rate of advance tax on profits earned from Sanchayapatra (savings certificates). From now on, authorities will deduct advance tax at a rate of 10 per cent when investors withdraw profits from any type of savings certificate.

Under the advance tax proposal included in the Finance Bill presented in the Jatiya Sangsad (National Parliament) on Thursday, beneficiaries of savings certificates will receive less profit in hand than before.

The measure is expected to increase financial pressure on middle-income households.