Government’s new challenge for senior citizens
The government recently increased the Withholding Tax on interest earnings to 10 per cent from 5 per cent that was being charged earlier.
Though 5 per cent being deducted was also unfair increasing it to 10 per cent is like throwing the depositors, who are dependent on this interest income, from the frying pan to the fire.
Those who have worked long years and retired from service are individuals who have contributed to government revenue by way of PAYE Tax throughout or for most part of their working life.
They now have to manage their expenses with the interest income from deposits made out of whatever meagre savings they have, including their retirement benefits.
How justifiable is it then to deduct a withholding tax from such earnings, while the interest rates on their deposits have also come down drastically during the past.
It becomes all the more serious for them against the backdrop of rising cost of living, with skyrocketing prices of coconuts, rice etc and the exorbitant fees that they have to pay for hospital services, channel medical consultations and drugs etc.
The present government that came into power with so many promises about the welfare of pensioners, has now decided to double the rate of withholding tax. Isn’t it appropriate to voice opinion against this move and urge the government to exempt it at least for the senior citizens?.
Varuna Ratnaweera Colombo
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!