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
Latest from Politics
Sen. Joel Villanueva said he would attend any special session of Congress that may be called
Sen. Erwin Tulfo revealed that some of his colleagues tried to convince him not to sign
The August Twenty-One Movement (ATOM) has strongly criticized Sen. Alan Peter Cayetano for comparing his bloc’s
The mayor of Pakil clarified that the local government has no legal authority to enforce the
Sen. Camille Villar visited earthquake-affected communities in General Santos City on Saturday to distribute relief assistance