EPF & ETF NOT included in Surcharge Tax, assures Basil

COLOMBO (News 1st); Sri Lanka's Finance Minister Basil Rajapaksa on Monday (14) assured the Cabinet of Ministers that the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) as well as 9 other funds will be exempted from the 25% Surcharge Tax proposed in the 2022 Budget.

It had been proposed in the 2022 Budget to impose a 25% Surcharge Tax on individuals or companies earning an annual taxable income of Rs. 2,000 million or more.

Concerns were voiced by experts, opposition politicians as well as members of the government itself that the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) would also be subjected to the surcharge tax.

They cited that any fund that exceeds Rs. 2 billion taxable income would be subjected to this surcharge tax.

However, Minister Basil Rajapaksa said he assured the Cabinet that 11 funds including the EFP and the ETF will not be subjected to this surcharge tax.