SENIOR CITIZENS BADLY AFFECTED DUE TO LOWERING OF PROFIT ON SAVINGS
President UNISAME Zulfikar Thaver has invited the attention of federal finance minister (FM) Ishaq Dar to the reduction in profit rates by the banks and National Saving Centres on term deposits by senior citizens and urged the FM to exempt the senior citizens from payment of 10% withholding tax on profit on savings and deposits to enable them cope up with the reduced rate of profit on their life time savings. It has become very difficult for them to survive as on the one side the profit rates have come down and on the other hand the prices of all items of food, clothing and medicines are increasing on a daily basis.
He said over a period of time the profit rates paid by banks has been reduced considerably as against inflation and depositors are finding it difficult to survive.
Thaver said it is incumbent upon the welfare state to look after its senior citizens, widows and minors and urged the FM to consider this shortfall in income and more so due to increase in the prices of kitchen items, consumer goods and also durables.
He said this will also discourage savings and it is also apprehended that the senior citizens depending only on profit on savings will start drawing from their savings to cope up with the expenses and may finish their savings.
Thaver invited the attention of the FM to the increasing prices of food, clothing, medicines and education and appealed to the FM to lessen the burden on the senior citizens by lowering the withholding tax on profits on savings accounts, regular income certificates, special savings certificates and other schemes to 5% instead of 10% to support the senior citizens.
Secondly he pointed out that commercial banks be directed to increase the profit rates for senior citizens as a special social responsibility gesture to support them. The banks are enjoying a big spread against borrowing and lending rates so a little extra profit giving to senior citizens will not be a big reduction in their own profits.
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