Inquirer
Palace debunks claims 20% tax imposed on bank savings
Malacañang clarified that the 20 percent tax applies only to interest earned from bank deposits, not the principal savings, debunking misleading claims online.
This clarification addresses public panic caused by the spread of misinformation regarding the Capital Markets Efficiency Promotion Act (CMEPA), which took effect on July 1.
Palace press officer Claire Castro emphasized that savings will not be reduced, as the tax is deducted from the interest earned.
Castro provided an example: on P100,000 savings earning P83.33 monthly interest, only P16.66 would be deducted as tax from the interest.
She also stated that this 20 percent tax on interest earnings has been in effect since 1998 and will contribute to sustaining government programs.
Castro advised the public to be critical of information shared on social media to avoid falling prey to misinformation.
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