Govt. to introduce relief program for senior citizens affected by withholding tax

• State Minister of Finance Ranjith Siyambalapitiya says a total of Rs. 40 b required annually for compensation activities 

In a bid to address the concerns of the senior citizens grappling with withholding tax on interest payments, State Minister of Finance Ranjith Siyambalapitiya announced plans for a formal relief program aimed at providing immediate assistance.

He outlined a practical program tailored to the Government’s cash flow capabilities, with the primary objective of swiftly removing withholding tax on interest payments for those earning less than 

Rs. 100,000 monthly.

“The Government is dedicated to implementing a formal and practical relief program to alleviate the financial burden faced by the senior citizens. A significant allocation of around Rs. 40 billion annually is required for these compensation activities,” he added.

Addressing concerns raised by Opposition leader Sajith Premadasa in Parliament regarding bank interest rates for the elderly, Siyambalapitiya acknowledged that the Government has recognised the challenges faced by this demographic. 

He noted that while the loan interest rate has been reduced from 16% to 9%, there is a clear understanding of the need for further support to ease financial burdens.

“Rather than offering immediate solutions the implementation of a structured relief program aligned with existing cash flows is important. This approach aims to ensure sustainable support for affected individuals, whilst managing the financial resources of the Government effectively,” he explained.

He believes a formal relief program signals the Government’s proactive stance in addressing the concerns of the senior citizens and reaffirmed its commitment to promoting financial inclusivity and support for vulnerable populations.