The tax revisions announced by the government have provided relief to 121,000 who paid PayE tax and increased the withholding tax on 16.1 million fixed and savings accounts by 5%, Matale District Parliamentarian Rohini Kavirathna says.
The country has been deceived by saying that the PayE tax limit will be increasing up to Rs. 200,000 during the election sesoan by the N.P.P. But Mr. Anura Kumara Dissanayake, who said that he would be increased it only upto to Rs. 150,000. any way this will benefit 121,000 people who pay the relevant tax.
At the same time, the government has increased the withholding tax from the current 5% to 10%. There are 1.61 million savings accounts in Sri Lanka, of which 50 million accounts are active monthly. The interest earned on all these accounts has been subject to a 5% tax increase.
In the face of the current crisis, the country’s economy continues to shrink. The lower middle class of society is struggling to meet its daily needs. Despite this, it is in no way acceptable to impose an additional tax burden on all 1.61 million savings account holders, including those from the lowest income group in the country.
It is a cruel act to impose the burden of withholding tax on nearly 5 million people who receive monthly or semi-annual savings interest for daily needs including food, medicine, etc.
Rohini Kaviratna
Matale District Member of Parliament