• 13 funds including EPF,  ETF, Pension Fund, Pension Trust Fund, Gratuity Fund to be excluded

By Lakmal Sooriyagoda   

The Attorney General yesterday informed Supreme Court that the Ministry of Finance has decided to exclude 13 funds including Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), Pension Fund, Pension Trust Fund, Gratuity or Termination Fund from the ambit of proposed Surcharge Tax Bill.  

Additional Solicitor General Viveka Siriwardena appearing for the Attorney General informed Supreme Court that the Ministry of Finance is planning to move several amendments at the Committee Stage in Parliament.  Secretary to the Treasury S.R. Attygalle has informed Attorney General in this regard through a letter dated March 2, 2022.

  
Consequent to the proposed amendments, President’s Counsel Farman Cassim appearing for the Samagi Jana Balawegaya (SJB) General Secretary informed the Supreme Court that he would not be making submissions following the Attorney General’s announcement that the pension funds will be exempted from the purview of the Bill.

Farman Cassim said the petitioner is only espousing the cause of the Working  Class and the Pension Funds rightfully belonging to the general public. 

 
Supreme Court three-judge-bench comprised Justice Buwaneka Aluwihare, Justice A.H.M.D. Nawaz and Justice Arjuna Obeysekera.  Ten petitioners including SJB General Secretary Ranjith Madduma Bandara, Swisstek Ceylon PLC, Manikkarasagar Thiyagaraja had filed Special Determination petitions seeking a declaration that the bill requires the approval by the people at a Referendum in addition to the 2/3 approval of the Parliament.   In his petition, Ranjith Madduma Bandara said in terms of clause 2(1) of the Bill any individual, partnership, or company whose taxable income exceeds Rs. 2000 million for the year of assessment commenced on April 1, 2020 have to pay a rate of 25% on the taxable income of such individual, partnership or company for such year of assessment.  Madduma Bandara maintained that if the Section 2(1) of the Inland Revenue Act No. 24 of 2017 and other incidental provisions of the Bill are read together with Sections 3 and Section 195 of the Inland Revenue Act, a company subject to the Surcharge Tax contemplated under the provisions of the Bill would include, the Employee Provident Fund, the Employee Trust Fund and the Mercantile Service Provident Fund.