SECRET
4.
The main argument against the removal of the tax is perhaps not so much on the size of lost revenues (KS 20.6 billion in the current fiscal year, some 2% of projected recurrent revenues), as considera- tion of the equity of the tax base. At present, besides interest withholding tax the tax range comprises income tax, payable only by a minority of salary-earners (on account of the relatively high level of allowances) at the maximum effective rate of 15%, corporation tax of 16% and a small contribution from excise and other taxes. However, the withholding tax is universally applied virtually the only tax of this kind - and although a relatively small burden notionally affects all depositors equally.
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