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Tax imposed on FDs and Savings increased from 2.5% to 5%

20 March 2018 06:38 pm - 38     - {{hitsCtrl.values.hits}}

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The tax has been increased from 2.5% to 5% from the interests earned from Fixed Deposits and Savings Accounts of Banks and Financial institutions according to the new income tax act which will come into effect from 1st of April.

The new tax revision will be applicable, if the income of a senior citizen is over Rs.1.5 million, according to new income tax act.

Ministry of Finance says, that the many changes have been introduced by new income tax act and P.A.Y.E. (Pay As You Earn) tax also has been increased from Seven Hundred Thousand to Twelve Hundred Thousand per year.

Arrangements have been made to tax 5% from the interests of the deposits of immigrants workers according to new income tax act. 5% of tax has been imposed according to new income tax for the deposits of emigrants workers despite the taxes in various forms have been charged from 2% to 10% on their deposits. (Ranjan Kasthuri)


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  Comments - 38

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  • Stunned Citizens Tuesday, 20 March 2018 06:52 PM

    How about Taxing Politicians and Government Employees too? They enjoy all the benefits tax free paid for by us tax payers.

    Caxton Tuesday, 20 March 2018 06:52 PM

    Day light robbery. Pepole hard earned money is robbed to support the goons.

    Premalal Wednesday, 21 March 2018 11:40 AM

    They rob We Pay.

    concern Tuesday, 20 March 2018 06:57 PM

    Need more money to purchase better vehicles for the ministers

    Suren Tuesday, 20 March 2018 06:59 PM

    Tax already struggling masses and spend on white elephant projects and super luxury cars and perks for the already wealthy politicians . shame .

    Appu Tuesday, 20 March 2018 07:06 PM

    Worst proposals ever. In order to maintain useless house common man has to sacrifice earnings

    chris Tuesday, 20 March 2018 07:20 PM

    Not the poor mans money. The tax goes on the money that the banks or financial institutions earn from the poor mans money. The poor man will still get his percentage of interest. The bank earns less from the poor mans money

    L Perera Wednesday, 21 March 2018 01:27 PM

    Chris has not read the proposal well. Please read between the lines. It has to be paid by the deposit holder not by the bank. If the bank will have to pay it that would be a huge cost to all banks and will result in making losses.

    ANTON Tuesday, 20 March 2018 07:19 PM

    HINGANNAGE PAATHTHRETA ..... MARU SIRAA PANNA........

    Happy now? Tuesday, 20 March 2018 07:23 PM

    And the comments blaming MR for this drastic increase in taxes is incoming in 3...2...1...

    Sam Tuesday, 20 March 2018 07:27 PM

    This gov is that nieve that they think people will appreciate this. Tis the final nail in their coffin.

    will Tuesday, 20 March 2018 07:27 PM

    Senior citizens,lower level immigrant workers mostly living on meagres income either on interest or by small amount of money send by relatives in distance country, this government whom appointed by them firstly,looted the government own central bank by appointing a foreigner,who is good for nothing but stealing as the head,then secretly send him out of the country and deposited, safely in Singapore ,billions of rupees looted sheared among them,now they trying to fill the empty coffers by taxing innocent people of the country,get join with us to teach these rogues lesson in coming provincial elections

    Samson Tuesday, 20 March 2018 07:29 PM

    Common man has to maintain the politicians

    Sunil Tuesday, 20 March 2018 07:34 PM

    We will move our foreign currency deposits to countries who do not tax. We have earned this from hard work sacrificing our youth and being away from our loved ones. It is unfair to tax us.

    Sunny Tuesday, 20 March 2018 07:42 PM

    What a foolish decision. The only way a common man can earn few bucks is going to be turned into nightmare too. Sorry state of affairs

    Immigrant Tuesday, 20 March 2018 07:49 PM

    Government has come up with a great and intelligent ideaTo fill up there every pockets in fullReaction would be that any immigrants will not be sending even a rupee from April 1st

    Pachaya Tuesday, 20 March 2018 08:03 PM

    The tax rate could go up to 25% in case of FD income

    D Tuesday, 20 March 2018 08:06 PM

    This government is giving me more reasons every day to leave and not look back

    Warren Raed Tuesday, 20 March 2018 08:36 PM

    This is why this country is suffering like this. People tend curse it's rulers instead of blessing them and these rulers become a curse and the country becomes cursed. It's a pity that we were born in such a doomed country.

    Suresh Tuesday, 20 March 2018 09:06 PM

    Why not tax for the air we breathe too?

    Dr A H A Hazari Tuesday, 20 March 2018 09:18 PM

    Please be accountable for all taxes collected and limit unnecessary expenses

    GH Tuesday, 20 March 2018 11:32 PM

    Worst Government

    Mangala Wednesday, 21 March 2018 12:57 AM

    in 2017, I sent nearly 40000€ to Sri Lanka. After this tax, Not even a cent. Are these politicians that much shameless to tax people who do hard works in middle east. These politicos are living from house maids, carpenters, masons, drivers, cleaners hard earned money. What a shameless action.

    Sam Wednesday, 21 March 2018 04:23 AM

    Unfortunately this will be the final nail in the coffin for this government. Taking more of the commen man at the bottom so that more can be robbed by the elite at the top. It is a disgrace.

    parakum Wednesday, 21 March 2018 05:04 AM

    Why not impose a TAX on sale of DUTY FREE permits?

    Rambo Wednesday, 21 March 2018 05:48 AM

    Taxes imposed on citizens in other countries goes back to the country's development and for services rendered to citizens, here on our blessed country they end up in wastage and to fulfill aspirations of the Diyawannawa Club members their kith n kin plus the henchmen.

    ali Wednesday, 21 March 2018 06:07 AM

    SL has to maintain World's largest and ever growing state sector workers. More than 50 cents of every 1 rupee income goes there if I am correct

    Ravi Wednesday, 21 March 2018 07:45 AM

    This is robbery indeed.Where can the common man go for help?

    Premalal Wednesday, 21 March 2018 11:44 AM

    There is such a person called the "President" of this country. Or is there a President?

    hans perlee Monday, 26 March 2018 12:04 PM

    There are 20.000.000 people in Sri lanka? And just one presidnt. March to Colombo, occuppie his office and he is gone.Bye bye, keep walking and don't look back. Time to get MR back in power.

    Man Wednesday, 21 March 2018 08:17 AM

    Ravi originated this system.

    Aje Wednesday, 21 March 2018 10:05 AM

    We do not ask job from Sri lankan Economy or Sri Lankan Government. We earn money working abroad suffering lot of hardships. If the government try to tax on our income, we don not send money or Deposit money in Sri Lankan banks.

    CIRIZEN Wednesday, 21 March 2018 10:50 AM

    Government is robbing "poor" Pieter to pay "rogue" Paul!

    Sasanka Wednesday, 21 March 2018 10:59 AM

    Obviously they have to tax us to cover the bank robbery. May the Yahapalanaya politicians and their henchman rot in hell! Their families too who live off us and go on all types of fun cruises all around the world! This government is by far the worst government this country has got since the Independence Day!

    Premalal Wednesday, 21 March 2018 11:42 AM

    Where is the President who promised us fairness?

    Ravi Wednesday, 21 March 2018 11:47 AM

    When will this Government stop hitting the poor below the belt?

    will Wednesday, 21 March 2018 01:23 PM

    If government is so desperate,bring down law ,no pay ,no pension for politicians,they should not have car permit for such a luxury vehicles,minimize the expenditure for president/ prime minister office, its more reasonable than taxing poor man

    Ashok Thursday, 22 March 2018 09:27 AM

    What's Next?, Death Tax???


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