Govt. hints providing relief to public sector after April

While insisting that only 10 percent of public sector employees are subjected to PAYE taxes, the government revealed that discussions are underway to grant relief to public sector employees after April.

“We will prioritise providing relief to public sector employees once we see a marked improvement in the economy,” the Cabinet Spokesperson Minister Bandula Gunawardana told reporters in Colombo yesterday.

In particular, he noted that discussions are underway at the Treasury to provide tax relief to government employees and special attention has been drawn to exempt various allowances granted to them from income taxes.

“Separate committees are considering exempting allowances coming under PAYE tax,” he added.

He remarked that the relief measures are likely to be granted beyond April after the country secured the US$ 2.9 billion IMF rescue package. 

However, he emphasised that only 10 percent of public cadre earning above Rs.100,000 per month is subjected to 
PAYE tax.