Jul 19, 2017

‘New Inland Revenue Act doubles tax on interest income’ Featured

The proposed Inland Revenue act will not only deny tax concessions thus far granted on the interest for fixed and savings deposits, but also proposes to double the tax on interest income, says MP Bandula Gunawardena.

The proposal is to raise from 2.5 per cent to five pc the tax on interest when it exceeds Rs. 60,000 a year, he told the media at the joint opposition’s economic research unit at Punchi Borella yesterday (18).

Another is to increase the 10 pc tax on saving accounts of charities to 14 pc and to bring various funds, hitherto exempted from tax, under it too, he charged.

It will also impose tax on EPF dividends, said Gunawardena.

The JO MP said he would request the government on behalf of all the savers to continue the tax concessions on fixed and savings deposits as well as the EPF dividends, and urged trade unions too, to demand so.

New act challenged in courts

Meanwhile, the inland revenue services committee says it filed three cases in the Supreme Court against the new act that would allow the commissioner general authoritarian powers.

Secretary of the committee Ajith Pushpakumara said bringing the decentralized tax administration under the commissioner general and new imprisonment and fine terms despite the existence of provisions to punish errant Inland Revenue officers too, have been challenged in courts.