Govt plans relief for low-income depositors
- 5opn1
- December 27, 2024
- Political
- Govt plans relief for low-income depositors
- 0 Comments
The Government is in the process of formulating a mechanism to provide relief to depositors earning less than Rs 150,000 in monthly deposit interest, who are currently subject to a 10 per cent withholding tax, Minister of Labour Anil Jayantha stated yesterday (26).
Speaking at a media briefing, the Minister announced that the Inland Revenue Department (IRD) would soon release details of the mechanism to address the concerns of affected depositors.
When asked whether the recently increased 10 per cent withholding tax is currently being applied to all depositors, the Minister confirmed that it is. However, he clarified that the forthcoming mechanism would provide relief to those in lower-income brackets.
“It is true that depositors earning less than Rs 150,000 in monthly deposit interest are currently subject to the 10 per cent withholding tax. The new mechanism will introduce measures to exempt such depositors and reimburse the tax already charged from them,” he said.
