8 July 2020 12:00 am
By Sandun A Jayasekera
The Ministry of Finance, Economy and Policy Development said yesterday the special interest rate of 15% payable to senior citizens for their fixed deposits had not been revised or reduced and would be continued to be paid as usual.
Dismissing some media reports that the special interest rate paid to fixed deposits of senior citizens had been reduced and the tax relief removed, a ministry spokesman said the ‘Special Interest Rate on Fixed Deposits by Senior Citizens’ introduced in 2014 had not been changed and would continue uninterrupted. The income tax benefits would also remain unchanged.
Soon after this government came to power on January 1, 2020, it lifted the withholding tax charged on the income earned from interest revenue of up to Rs.250,000 a month or Rs.3 million annually.
“Therefore, the public and senior citizens in particular must not panic over a canard being spread by interested parties to disrupt peace and tranquility in the country,” the spokesman said.