The special interest rate of 15% offered by the Government for senior citizens have not been changed despite the Central Bank reducing deposit rates in commercial banks, the Finance Ministry said today.
"There is no truth in the media reports published by different media saying that the 15% special bank interest rate which has been granted by the Government for senior citizens has been reduced," the statement read.
The special interest rate of 15% granted for the fixed deposits maintained by senior citizens was introduced though Budget 2015 and, it has been continuing with effect from 13.03.2015 without any changes, the Ministry said.
Withholding tax threshold increased!
However, Finance Minister Mangala Samaraweera had extended the tax exemption granted to senior citizens by a further LKR 500,000 taking the tax free interest income threshold to LKR 1.5 million.
The treasury has provided nearly LKR 16 billion annually to commercial banks to provide for the increased interest rate, the Finance Ministry noted.
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