• The Labour Ministry had informed the Inland Revenue Department that it  was a wrong interpretation and registered their protest some months ago

By Ajith Siriwardana and Yohan Perera   

The Labour Ministry had already informed the Treasury and the Commissioner General of Inland Revenue, its objections to the proposal of imposing a tax on EPF and ETF profits, Labour Minister Nimal Siripala De Silva said yesterday.   

He told Parliament that the Inland Revenue Department had issued an interpretation that the profit of the EPF and ETF should be subjected to a tax according to the income tax act.  

He said the Labour Ministry had informed the Inland Revenue Department that it was a wrong interpretation and registered their protest some months ago.  

The Minister said this in response to a question raised by Opposition Leader Sajith Premadasa, who said that there was a move to impose a tax on EPF and ETF profits and that it was a daylight robbery.  

Mr. Premadasa said the government was planning to earn Rs. 65 billion by taxing Rs. 250 billion profit of the EPF and ETF funds of Rs. 3 trillions.  

“This is a daylight robbery. This is done to find money for the ‘weda lakshayak’ programme. This should be immediately stopped,” he said.  

When asked whether the Minister was against the new gazette issued by the Finance Ministry on imposing the tax, he said it should be separately discussed whether it was right or wrong.  
UNP MP Ranil Wickremesinghe said a new bill should be introduced to exempt the EPF and ETF funds from income tax.  

• UNP MP Ranil Wickremesinghe said a new bill should be introduced to exempt the EPF and ETF funds from income tax