Govt. suspends PAYE tax, circular will be issued this week: Siyambalapitiya

• Certain government and semi-government institutions have deducted tax from people who earn an income beyond a certain limit

By Chaturanga Pradeep Samarawickrama  

The government has decided to suspend paying of PAYE tax by government or semi-government institutions, Finance State Minister Ranjith Siyambalapitiya said.   

He said yesterday the circular in this regard will be issued within this week.  

The State Minister of Finance pointed out that certain government and semi-government institutions have deducted tax from people who earn an income beyond a certain limit.  

It has also been revealed that the PAYE tax has been deducted when the service contracts of semi-government institutions and corporations are earned, he said.   But the state minister said such irregularities could not be allowed in the current economic situation, the State Minister added.