The Hon. Sajith Premadasa - Leader of the Opposition
Sajith Premadasa raised concerns under Standing Order 27(2) about the impact of reduced deposit interest rates and taxation on ordinary senior citizens who depend on interest income for basic needs such as healthcare and nutrition. He asked the Government to clarify the current withholding tax rate on deposit interest, whether the Budget proposes an increase, whether all senior citizens’ deposits are subject to the tax or threshold exemptions apply, and what mechanism exists for seniors to reclaim withheld tax, noting practical difficulties faced by many elderly depositors.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Mr. Speaker, under Standing Order 27(2), I raise the following:
¶ 02 Ensuring a dignified life for senior citizens is our moral responsibility. Recently, reductions in interest rates on senior citizens’ deposits—the only income source for many—have pushed them into hardship, affecting access to healthcare and nutrition. I urge special attention from the Government to address their pressing issues. I speak not of the very wealthy, but of ordinary senior citizens.
¶ 03 My questions:
¶ 04 1) What is the current rate of withholding tax charged on deposit interest? Does the Budget propose to increase this rate? If so, by how many percentage points?
¶ 05 2) Are all senior citizens’ deposits subject to withholding tax? If not, what thresholds apply before withholding is charged?
¶ 06 3) Is there a mechanism for seniors to reclaim the withheld tax? If so, what is it? Many seniors with limited literacy face difficulties navigating this process.
Provenance
- Source
- Hansard, Thursday, 20 March 2025 ·No. 1746596381071973 ·English daily/uncorrected Hansard
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Cite as: The Hon. Sajith Premadasa - Leader of the Opposition. 10th Parliament, Parliament of Sri Lanka. Hansard, 20 March 2025. No. 1746596381071973. Politick, https://staging.politick.io/lk/speeches/24031