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No Income Tax on Fixed Deposit: Holistic Outlook!!!

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This topic contains 3 replies, has 3 voices, and was last updated by  reachiso 1 month, 1 week ago.

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  • #155803

    btcivicsense
    Participant

    Parliamentarians unanimously raised their hands to not to levy any income tax on fixed deposit. I wonder, whether that was another political stunt, be it DPT or PDP, to please voters for 2018 election. Despite knowing the long term & economic rationale behind such tax measure, did they intentional raised their hands? How about if they could have considered it holistically taking country’s long term economic conditions?

    They could have agreed on certain threshold of fixed deposit amount beyond which income tax would be liable. WHY? Mainly to discourage rich people to stock or park their huge income ideal & earn interest income for themselves. This further widens the gap between haves & have-nots. Also, economy need supply & circulation of money spreading benefits through vibrant economic activites further creating opportunities for all. Sadly, this new policy would allow people to be selfish & encourage unhealthy living habits further shrinking the economy.

    Anyways, am no economist but my laymen civicsense is telltelling me this.

    #158052

    logical
    Participant

    If government ensures to protect erosion of money value and maintain ZERO INFLATION, it will be agreeable to keep FIXED DEPOSITS in the Banks with minimal interests and no taxes on them. At the present situation, the annual inflation rates are higher than 10%. Income from interest is lesser than 7%, incurring 3% loss on principal amount annually. It is right to consider no taxes on interest earned from fixed deposits of private individuals that avail money to the Banks on fixed terms.

    This practice should have prevailed from long time ago instead of making it recent consideration.

    #158056

    logical
    Participant

    If government ensures to protect erosion of money value and maintain ZERO INFLATION, it will be agreeable to keep FIXED DEPOSITS in the Banks with minimal interests and no taxes on them. At the present situation, the annual inflation rates are higher than 10%. Income from interest is lesser than 7%, incurring 3% loss on principal amount annually. It is right to consider no taxes on interest earned from fixed deposits of private individuals that avail money to the Banks on fixed terms.

    This practice should have prevailed from long time ago instead of making it recent consideration looking like a favour for which government is accused of acting with vested interest.

    In regards to building national economy, the method of gathering through taxing and retaxing from the already taxed goods and services is definitely unproductive method. While HOARDING of resources by some against the scarcity to others is the issue to address, it can be controlled by deciding ceiling on the properties an individual can hold above which everything they own belongs to the state, like the case of land holding ceiling of 25 acres.

    #165717

    reachiso
    Participant

    No,Some amount of Income Tax is fixed.

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