The poor get poorer and the rich get richer This Government imposed a withholding tax (WHT) on interest paid on Fixed Deposits. Earlier senior citizens were exempted from WHT upto a certain limit. I wonder if they are aware that the senior citizens who have invested in Fixed Deposits are mostly retired private sector employees [...]

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The poor get poorer and the rich get richer

This Government imposed a withholding tax (WHT) on interest paid on Fixed Deposits. Earlier senior citizens were exempted from WHT upto a certain limit.

I wonder if they are aware that the senior citizens who have invested in Fixed Deposits are mostly retired private sector employees who do not receive a monthly pension. The Fixed Deposits are the terminal benefits they have received and the interest on them is their only oncome.

With the rising costs of food and medicines the government has been cruel to slap income taxes too on them if the annual income exceeds
Rs 1.2 million, which is a monthly income of Rs. 100,000.

The imposition of VAT of 18%, on such items as petrol, diesel etc, will add a further burden on the already suffering masses.

The recent announcement of salary increases to the public sector, doctors and University academic staff from this month has come as a shock to others who are not receipt of any increases. The cost-of-living affects everyone (labourer, mason and other daily wage earners).

Now the latest regulation is that everyone over 18 years whether they be students, labourers, domestic helpers etc must obtain a TIN number and open a tax file. Imagine the workload the Inland Revenue Department will have to handle! Is it practically possible?

If the Government looks at the wasteful expenditure incurred and reduces or totally eliminates such expenses, they can to a certain extent give relief to the public who are already on the brink of giving up.

Some of the wasteful expenses people are very angry about are:

  •   Expensive meals supplied to Parliamentarians. (Hope at least the opposition takes a decision to give up the free meals and set an example)
  •   Excessive security contingents of past Presidents and Ministers
  •   Perks of Ministers
  •   Unnecessary foreign travel

The general feeling is that the assets amassed by Parliamentarians should also be looked at and the necessary action taken. How many of them have declared their assets? The feeling among many is that the Government is taxing the poor to maintain their luxury lifestyle.

 Ganganath Kariawasam   Via email


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