Reintroduce WHT on interest as a once and for all payment

When this government came into power, as one of the so-called relief measures, the once and for all Withholding Tax on interest was abolished.

This has created enormous problems, especially to senior citizens with limited sources of income. Prior to the removal of this tax, whenever an interest payment was made, the tax was automatically deducted by the bank or finance company as a once and for all tax.

Now, if the income is above a certain threshold, they are expected to submit assessment forms annually to the Inland Revenue Department where the interest received is declared, tax computed and remitted to the Tax Department. While most senior citizens with no other income do not receive tax declaration forms, they are expected to get a file opened for the purpose. The problem arises when trying to fill the forms. The assistance of a tax consultant is essential and a fee of Rs. 25,000 to Rs. 50,000 has to be paid, the sum sometimes being higher than the ultimate tax payable. I am aware that so many Fixed Deposit holders receiving taxable interest payments do not declare and pay tax due to the cumbersome issues involved.

Please reintroduce WHT on interest as a once and for all payment with a provision to obtain a direction for those whose total income is below the taxable threshold. This will also provide a steady stream of income to the State. Nimal Kodituwakku Via email