The government is working on a mechanism to offer relief to depositors earning less than Rs. 150,000 in monthly deposit interest but who have been subjected to the 10% withholding tax, Minister of Labour Anil Jayantha announced today.
Addressing a press conference, the Minister explained that the Inland Revenue Department will soon release the details of how these depositors’ concerns will be addressed.
Current Tax Situation
In response to inquiries, Minister Jayantha clarified that the 10% withholding tax is currently being applied to all depositors, regardless of their income level.
Relief Measures in Development
The new mechanism will introduce measures to exempt depositors earning below Rs. 150,000 in monthly deposit interest from the tax. Additionally, provisions will be made to refund the tax already collected from those in the lower-income bracket.
“While it is true that these depositors are currently subject to the 10% tax, the upcoming mechanism will ensure fairness and provide much-needed relief to those earning less,” Minister Jayantha assured.
This initiative reflects the government’s commitment to addressing the financial challenges faced by low-income individuals and fostering a more equitable taxation system.
