Malacañang clarified on Friday that the recently implemented 20 percent tax applies only to interest earned on bank savings, not the total amount deposited.
This statement came after misleading posts about the Capital Markets Efficiency Promotion Act (CMEPA) caused public confusion and panic.
Palace press officer Claire Castro explained that the tax is deducted solely from the interest income, ensuring that the principal savings remain intact.
The 20 percent tax on interest earnings has been in effect since 1998, with recent changes removing preferential rates for long-term deposits.
Castro emphasized that this tax helps fund government programs and does not reduce the actual savings of depositors.
Source: PhilNews24 | July 19, 2025
PALACE DENIES REPORTS OF 20% TAX ON BANK SAVINGS
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