In a move aimed at alleviating the financial burden on senior citizens, the government has made the decision to refund the five percent withholding tax that has been imposed on the interest and taxable income of senior citizens. This refund will come into effect after September 10, provided that the interest income remains below Rs. 100,000 per month. Finance State Minister, Ranjith Siyambalapitiya, announced this significant decision, which was made in collaboration with Finance Minister President Ranil Wickremesinghe, taking into account the circumstances faced by senior citizens.
During his role as the chief guest at the tenth Annual General Meeting of the Inland Revenue Assessors’ Union (IRAU) in Colombo on August 29th, the State Minister shared these details. The withholding tax, amounting to five percent, had been instituted starting from January 1, 2023, impacting not only senior citizens but also individuals with an annual interest income exceeding Rs. 1.2 million.
Recognizing the concerns and appeals from senior citizens whose monthly interest income falls below Rs. 100,000, the government has approached the matter empathetically. Negotiations were held with the Inland Revenue Department to address this issue. Consequently, a decision was reached to refund the five percent that had been deducted as withholding tax from the interest income of senior citizens who earn less than Rs. 100,000 per month. This corrective measure is set to take effect from September 10 onward, providing some relief to the affected seniors.