Government Eases pensioners’ WHT refunds
- 5opn1
- January 14, 2025
- Political
- Government Eases pensioners’ WHT refunds
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The government is to implement a mechanism for the refund of With Holding Tax (WHT) from retirees who do not come within the income tax ambit.The move comes amid the recent government decision to increase WHT on bank deposit interest to 10 per cent from 5 per cent as a measure to beef up revenue collection from the taxes.
While the increased rate is expected to swell state coffers, pensioners exempt from paying income tax have to go through the refund process to retrieve deductions made on their interest income.
Accordingly, at a discussion held with Finance Ministry officials, President Anura Kumara Dissanayake instructed that an efficient mechanism for the refund of WHT should be introduced without further delay. The President said that, knowing the burden retirees face, this was the need of the hour to lessen their sufferings.
Furthermore, he said that the VAT collection mechanism has to be digitised with priority for increased compliance and enhanced transparency. For improving state revenue collection, he recommended swiftly implementing a wide-ranging digital taxation system.
Pensioners from whose bank deposit interest, WHT has already been deducted, can claim the amount back.The retirees would need to collect their bank statements and the corresponding papers as proof of WHT deduction on bank deposit interest.
