By Ruth Abbey Gita-Carlos | Philippine News Agency
The public need not worry about the 20% tax on interest earned from bank deposits, Malacañang said on Friday, as it clarified misconceptions about the implementation of the new tax rates on savings interest.
In a press briefing, Palace Press Officer Claire Castro warned the public against “fake news” about the 20% final tax on interest income from bank deposits.
“Bakit nga ba sinabi nating fake news ito na hindi dapat ikaaalarma ng taumbayan? Ang papatawan ng buwis ay hindi savings, kundi ang interest na kinikita sa ating savings. Hindi po kailan man mababawasan ang ating savings dahil lamang sa sinasabing pagbubuwis,” Castro said.
She also stressed that the 20% tax on interest earnings from bank deposits is not new, as it has been in place as early as 1998, or before the enactment of the Capital Markets Efficiency Promotion Act (CMEPA).
She advised the public to be more discerning of what they read and share on social media, considering that there are many “fake news peddlers and obstructionists” who are making up stories to sow confusion.
“Iniiba nila ang kwento. Alam naman natin at alam nila ito pero pilit nilang binabaluktot ang katotohanan para sirain ang tiwala ng taumbayan sa administrasyon,” Castro said.
“Tulad nang sinabi natin, 1998 pa po ito at makikita po ito sa inyong passbook o bank statement. Ang kaibahan lamang ngayon ay ang pagtanggal ng preferential rates sa mga deposito na lock-in sa mas matagal na maturity.”
Before the passage of the CMEPA, the National Internal Revenue Code of 1997 imposed a 20% final tax on interest earned from bank deposits with a maturity of less than three years.
More than 99.6% of total deposits were already subject to the 20% tax rate, while only 0.4% enjoyed preferential rates, according to the data from the Bangko Sentral ng Pilipinas (BSP).
Castro explained that there will be no deduction in P100,000 worth of savings, saying that only P16.66 will be deducted from the P83.33 worth of interest earned.
She said the uniform 20% tax rate on interest income would be a “big help” to the government.
“Ang halagang ito ay malaking tulong na sa ating mga kababayan bilang kontribusyon na mapupunta sa programa ng pamahalaan na layunin iangat ang pamumuhay ng bawat isa,” she said.
