The government has assured to make amendments and exempt the Employees’ Provident Fund and the Employees’ Trust Fund from the proposed 25 percent surcharge tax.
Speaking during the weekly Cabinet media briefing today, Minister of Trade Bandula Gunawardena urged the public not to doubt the pledge made by the Minister of Finance to remove the EPF and the ETF from the surcharge tax bill.
He said that the relevant amendments will be presented by the Minister of Finance during the Committee Stage of the Parliamentary debate.
Minister Bandula Gunawardena also accused the previous good governance government of creating unnecessary issues in the country.
The Minister claimed that the previous government faced a foreign reserves crisis and arrived at an agreement with the International Monetary Fund to impose several taxes locally.
He said accordingly, former Minister of Finance removed all tax concessions granted by the previous Mahinda Rajapaksa-led administration to businesses.
Minister Gunawardena said additionally the previous good governance government declared EPF and ETF as companies in the Inland Revenue Act which was passed in 2017.
He said therefore certain factions raised concerns that the 25 percent surcharge will also be imposed on the EPF, ETF and other pension funds.
Minister Gunawardena said however the Finance Minister has assured the Cabinet that a total of 11 funds will be removed from the surcharge tax when the bill is taken up during the committee stage in Parliament.
He also said the gazette is not required to be reversed but amendments to the bill will be tabled in Parliament.
