NBR offers tax rebate for Universal Pension Scheme

The policyholders of the Universal Pension Scheme (UPS) will enjoy tax rebate on the premiums they would deposit in a year.

Moreover, people subscribing to the state-backed scheme will not have to pay any taxes on their claims upon maturity, according to a notification by the National Board of Revenue (NBR) this week.

"We have taken the decisions in order to make the Universal Pension Scheme popular. Because, universal pension scheme will act as a major social security for people," said Bapan Chandra Das, second secretary tax legal at the NBR.

In August, the government rolled out the much-anticipated UPS with an aim to bring all citizens aged above 18 under the coverage.

All citizens aged between 18 and 50 years on the basis of their national identity cards, including expatriate Bangladeshis, will qualify for the benefit.

Previously, only employees of government, semi-government or autonomous organisations in Bangladesh receive pension benefits.

Under special consideration, citizens aged over 50 years will also be able to take part in the pension scheme.

Through the new law, the government aims to bring private sector employees under the pension scheme.