The government’s income from interest tax fell by about 16 percent in the first five months of the current fiscal year because bank interest rates have dropped sharply. It collected Rs 12.61 billion from tax on deposit interest between mid July and mid December, compared to higher amounts in previous years. This decline is due to excess money in banks and weak loan demand, which have pushed deposit interest rates down to around 5.5 percent from double digit levels a few years ago.
Govt Earnings From Interest Tax Plunge 15.76 Percent in Five Months
