Exempting non-cash benefits from PAYE tax Only benefits Ministers, MPs: Wasantha Yapa

By Ajith Siriwardana and Yohan Perera   

The circular issued by the Inland Revenue Department exempting employees from paying PAYE tax on non-cash benefits would not benefit the government sector employees but would only benefit the Ministers and MPs who receive a wide range of non-cash benefits, an MP said yesterday.  

Parliamentarian Wasantha Yapa Bandara told Parliament that Ministers, MPs and Chairpersons of state institutions were getting a wide range of non-cash benefits such as vehicle, fuel allowances, housing and medical benefits more than the basic salary.  

“Exempting non-cash benefits from PAYE tax is an undue advantage for Ministers and MPs as they get non-cash benefits higher than the basic salary. This tax exemption in no way benefits the government sector employees,” he said.  

The MP said he paid Rs. 75,666 as PAYE tax last month from his allowances as an MP and added that they were not willing to enjoy tax exceptions by inconveniencing the people.  
He said steps should be taken to provide true benefits to the common man. 

*** This tax exemption in no way benefits the government sector employees