THE government has chosen to tax Behbud Savings Certificates (BSCs) through the Finance Act, 2026, and has also increased the withholding tax (WHT) on Special Savings Certificates (SSCs). This reverses a 20-year policy that kept BSCs tax-free for widows, senior citizens and special persons because they have no other means of generating an income. Imposing unfair taxes on a vulnerable segment of the population is not ‘broadening the tax base’. This is squeezing those who need more compassion than those who should be in the tax net, but either evade it, or they are provided privileges by the government .

A senior citizen earning Rs25,000 from SSCs will now lose thousands of rupees annually to WHT while facing over 15 per cent inflation on medicines and utilities. If fiscal discipline is the goal, then the government should target undocumented wealth, not citizens’ savings certificates. The government should restore BSC exemption from tax and reduce the WHT against SSCs so small savers are spared. The government should look into the matter immediately.

Name withheld on request
Karachi

Published in Dawn, October 3rd, 2026