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Bandula raps withdrawal tax

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30 November 2015 10:25 am - 26     - {{hitsCtrl.values.hits}}

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UPFA MP Bandula Gunawardane today criticised the budget proposal to impose charges on cash withdrawals by bank customers. The government through the 2016 budget has proposed to impose charges on cash withdrawals which exceed Rs. 1 million.

Accordingly, a 2 percent of a charge would be acquired by the government when a customer withdraws cash between Rs. 1 million to 10 million.

Those who are withdrawing cash amounts exceeding Rs.  10 million would be liable for a 3 percent of a charge from their funds.

Discouraging cash transportation in line with security considerations was the reason for the proposal, Finance Minister Ravi Karunanayake said in his budget speech.

MP Gunawardane said the proposal was absurd as it was discouraging people to save in banks.

“People can’t withdraw their own money without giving a ransom to the government. If someone withdraws Rs. 1 million, they won’t be able to get the total amount. They will have to pay Rs. 20,000 to the government. When withdrawing more than Rs. 1 million, a person will have to give Rs. 200,000,” he said.

He said this proposal was one of the many budget proposals which had deceived the people. (Lahiru Pothmulla)

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  Comments - 26

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  • kumar Monday, 30 November 2015 07:24 PM

    BP is in the right direction BG is misleading.

    Sri wickrama Tuesday, 01 December 2015 12:09 PM

    You got this budget proposal by the tail.This is in respect of savings accounts only.No cheques are issued on savings accounts.

    onlooker Tuesday, 01 December 2015 10:46 AM

    Ravi will have to go on making amendments to the budget and finally we will have an entirely new budget. Ravi will not resign, that is yahapalana.

    Mandy Tuesday, 01 December 2015 08:12 AM

    This is not about savings but withdrawals - why withdrawsuch alarge amount unless you do not want a trace.

    Niranjan Tuesday, 01 December 2015 01:14 AM

    About time if you want to discourage cash transactions - It is a common practice in many other countries - It should be a specific percentage - Considering not to allow multiple withdrawals - Believe me some countries even charge a fee for Cash deposits! It is call "Cash handling fee" - This is to encourage people to use Self service devices like ATM machines

    Prem Nath Tuesday, 01 December 2015 12:27 AM

    Just because Ranil and Sirisena say that the previous govt.was a bunch of crooks and robbers,nothing has still been proved by the appointed commissions.Its unfair to blame the leaders of the previous govt.for the faults of this yaapaalma"

    chimpa Monday, 30 November 2015 11:00 PM

    That means Bank pay interest and withdraw that. Never in the history of Srilankan politics this has happened.

    Saman Perera Monday, 30 November 2015 10:57 PM

    useless budget, safeguarding the Colombo 7 executives and taxing everyone else in the country.

    Mandy Monday, 30 November 2015 10:04 PM

    Many countries are moving towards a cashless society. So unless someone wants a cover up or for a bribe, why draw such large amounts in cash. Companies can easily request employees to open bank accounts while the minor staff total payments will not exceed a million.

    Sincere Monday, 30 November 2015 09:41 PM

    HE Puswedilla can think of getting this man for his dramas!

    Aquarius Monday, 30 November 2015 09:23 PM

    Banking has moved on to the 21st century and it is better to educate the clients on how best to move money legally withinh the banking framework. Most everyone in the country has bank accounts. Transferring money as bank transactions should be the safest and best form of transaction. It is not everybody who can make cash withdrawals of a million or over and in today it is a massive risk to carry cash around. Mr. BG please stop playing to the gallery.

    The Real Minister of Finance Monday, 30 November 2015 08:46 PM

    Ravi...now you are a Finance Minister...not a bank Accountant..so please ask advices from Former Minister of Finance..

    fernando Monday, 30 November 2015 07:58 PM

    i do not know somthing wrong with him , coming with not practical proposals

    Oma Yang Monday, 30 November 2015 04:20 PM

    Its way safer, plus I am sure a few your goons will be out of jobs. Its way better than, your remark of how a family of four can live comfortably with Rs. 7,500.00 and better than your government robbing us blind.

    Wildwine Monday, 30 November 2015 05:58 PM

    This will not prevent people (mostly companies) from drawing cash. A company that wishes to draw 1Million will simply make 02 withdrawals; causing extra administrative hassle (both for the company and the Bank). Government tax objective will not be met.On the other hand who is going to pay the fee; the account holder or the person withdrawing cash? If it is the latter, people will stop accepting cash cheques anymore.

    Wildwine Monday, 30 November 2015 05:57 PM

    @Bill Gates, last time I checked Bank Draft was not a negotiable instrument and not divisible i.e. it has to be written to a specific person and can not be broken down to small amounts.

    Felix Monday, 30 November 2015 05:22 PM

    It is clearly stated it is for Cash Withdrawals and not bank transfers or Bank Drafts. It encourages the companies to open bank accounts for their staff and will not risk the lives of the cashier who goes to withdraw. Those who need to make a cash payment above i million has the option of paying the fee or use a bank draft instead. It only hurts the rich. So why bother.

    Bill Gates Monday, 30 November 2015 05:07 PM

    Have you ever heard of a document called Bank Draft ?

    Joseph Monday, 30 November 2015 05:07 PM

    If I am correct it relates to cash withdrawals. Anybody withdrawing cash less than 1Mn will not require to make the payment. It does not relate to withdrawals by cheques or drafts. How many can withdraw Rs.1mn or above at once in this country?

    lkboy Monday, 30 November 2015 05:01 PM

    I think just blindly blaming the messenger is not good for us in the return.

    Bala Monday, 30 November 2015 05:01 PM

    Why draw cash and transact dealings unless it is to launder or cover up. You can draw a cheque or transfer on line or by bank draft all of which will leave a trail and cash from tuition classes will be shown up and people like BG will not like it but this is a great proposal to track illegal wealth and corruption.

    lkboy Monday, 30 November 2015 05:01 PM

    Then why should we save in Banks??

    anuraj Monday, 30 November 2015 04:49 PM

    This is not a practical proposal. Imagine in a market where annual interest rate is in the region of 6% - 7% who is going to save money in a bank if cash withdrawals are restricted like this. or else customers may demand multiple low value withdrawals creating queues at banks.

    Ohoma Yanne Kohomada Monday, 30 November 2015 04:46 PM

    It is best to rob people blind directly rather than do it in secret.

    Appuhaamy Monday, 30 November 2015 04:44 PM

    He seems lost and gone insane..

    Gamaraala Monday, 30 November 2015 04:42 PM

    My Econ Master seems to be still living in the stone age..


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