(UTV|COLOMBO) – The Ministry of Finance stated that the rumours spread by certain groups claiming that the Government has imposed a retention tax on the annual interest on children’s savings accounts are false.
A Ministry Spokesperson was quoted by ITN News stressed that since the year 2006, a 5 percent tax was retained on an annual interest income of 5,000 Rupees.
At present the Finance Minister has proposed to the Cabinet to remove the retention tax from the new tax amendment. Minister Mangala Samaraweera presented to the Cabinet last week the 5 percent retention for Children’s savings and the proposed 14 percent on Authors’ from the new tax act.
Accordingly the Cabinet is expected to give its approval to the proposal following discussions.
The Finance Minister said the amendments would be submitted to Parliament for approval. The Retention Tax on Children’s accounts was implemented according to the old tax act since 2006.
The Government has to repay huge loans taken by the Government which was in power before 2015. The Finance Ministry said that although the Government has to increase income to pay debts, it will be done without putting pressure on the general public.
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