Government Raises Withholding Tax on Filers and Non-Filers investing in National Saving Schemes

July 10, 2019 (MLN): The Government has raised taxes on People investing in National Saving Schemes, targeting both filers and Non-Filers.

According to information, for non-filers the government has raised the withholding tax rate for investments up to Rs. 500,000 from 10 percent to 20 percent, while investment over the amount will be subject to 30 percent an increase from the current 17.5 percent.

For tax filers, the applicable tax rate for yield up to Rs.500,000 remains unchanged at 10 percent, however on investments over the amount the applicable tax rate has been raised to 15 percent.

It should be mentioned that National Saving Schemes have historically been safe haven for investors in a rising interest rate scenario as well as a good source of funds for the government.

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