State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal assured in Parliament today that the government does not plan to levy any kind of tax on withdrawals made from the Employees Provident Fund.
Responding to a question raised by Parliamentarian Buddhika Pathirana, State Minister Cabraal said the rumours circulating on media claiming the government is attempting to introduce a tax on EPF savings were untrue.
MP Pathirana said private sector and semi government employees contribute eight percent to the Employees Provident Fund while the employers contribute 12 percent to the EPF and three percent to the Employees’ Trust Fund.
The Parliamentarian requested confirmation to be submitted to the House that the government does not plan to charge a tax of 14 percent on these funds.
State Minister Cabraal said the present administration has no intention to do so adding that certain Ministers from the previous government held discussions on this matter. MP Pathirana raised concerns on the investments made utilising the funds in the EPF.
State Minister Cabraal responded that the EPF website clearly outlines its investment policy guideline.