Government’s new challenge for senior citizens

Friday, 27 December 2024 00:06 - - {{hitsCtrl.values.hits}}

By Varuna Ratnaweera

The Government on 18 December increased the Withholding Tax on interest earnings to 10% from 5% that was being charged earlier.

Though 5% being deducted was also unfair, increasing it to 10% 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, so charged, from 5% to 10%.

Isn’t it appropriate to voice opinions against this move and force the Government to exempt at least the senior citizens from this unfair predicament.