Increase of withholding tax unfair: Opposition

By Yohan Perera   

Those who keep their hardly earned monies in banks are badly affected by the government’s decision to increase the withholding tax by 5 percent, an opposition MP said yesterday.   

“Public servants, the middle class and even pensioners have been affected by the government’s decision to increase withholding tax from 5 percent to 10 percent,” Samagi Jana Balawegaya (SJB) MP Nalin Bandara Jayamaha said.   

“A good number of people are affected by this move, especially those who live by the interest they receive for the deposits. The real issue is that the increased withholding tax is charged from those who have a small sum in their savings accounts,” the MP told media.  

“It is true that the deposit holders can reclaim the tax from the Inland Revenue Department. It is a time consuming process as deposit holders have to visit the Inland Revenue Department several times to make the reclaim,” he added.