Economic analysts point out that due to the increase in withholding tax on bank interest to 10%, many depositors will be tempted to withdraw their deposits, which will put the banking system at risk.
Even when the withholding tax on bank interest was 5%, many people took steps to withdraw their deposits. Due to this, the income received by the Inland Revenue Department from that interest has decreased from 13 to 05 billion rupees, according to Finance Ministry sources.
Sources also state that the income will decrease further due to the increase in withholding tax on bank interest to 10%.
The Finance Ministry says that those who do not pay tax to the Inland Revenue Department have the option of recovering this tax, and they can submit their income reports etc. to that department and obtain that tax, and a methodology will be prepared in this regard.