Abolishing WHT and the plight of senior citizens

The new Gotabaya Rajapaksa government announced a series of tax reductions which brought relief to many, but unfortunately, much heartburn to us senior citizens. Most of us senior citizens depend on the Interest Income we receive from our monies collected over a lifetime to spend the rest of our lives in some kind of comfort. Prior to 2015, the Withholding Tax (WHT) and Interest Income was 2.5 per cent. Thereafter, the yahapalana government gave a tax-free Interest Income of Rs.125,000 per month and levied a WHT of five per cent on the balance. As the WHT is a “once and for all” tax, the Interest Income was not subject to Income Tax.

We appeal to Prime Minister Mahinda Rajapaksa who is also the Minister of Finance to consider our plight and subject the Interest Income of senior citizens to a “once and for all” WHT of 2.5 per cent (or even five per cent) on Interest Income of more than Rs.250,000 a month

The new government announced the WHT would be totally abolished from April 1, 2020. Does this mean that we senior citizens will have to pay Income Tax on the Interest Income of more than Rs.250,000 a month? Many of us senior citizens totally depend on the Interest Income we receive and the rate of Income Tax is very much higher than the present WHT of five per cent.

During the presidency of Mahinda Rajapaksa, the WHT on Interest Income was only 2.5 per cent. Why is the new government trying to harass the senior citizens by totally abolishing the WHT and thereby compelling us to open Income Tax files, fill laborious Income Tax returns every year and pay Income Tax (at a higher rate than the WHT) four times a year?

We appeal to Prime Minister Mahinda Rajapaksa who is also the Minister of Finance to consider our plight and subject the Interest Income of senior citizens to a “once and for all” WHT of 2.5 per cent (or even five per cent) on Interest Income of more than Rs.250,000 a month. Concerned Senior Citizen

Colombo 8