EPF and ETF will not be subjected to 25% Surcharge Tax: Basil

• Basil  also explains to Cabinet one-time surcharge of 25 percent would be  levied on individuals or companies earning more than Rs. 2,000 billion
• When we  calculate those 69 companies and individuals we will be able to collect  Rs. 105 billion

Finance  Minister Basil Rajapaksa yesterday assured the Cabinet that the  Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) and  nine other funds will be exempted from the one-time tax surcharge of 25%  as proposed in the 2022 Budget.

In the 2022 Budget, it has been  proposed to impose a 25% Surcharge Tax on individuals or companies  earning an annual taxable income of Rs. 2,000 billion or more. 

“In my  2022 budget speech, I clearly stated that a one-time surcharge of 25  percent would be levied on individuals or companies earning more than  Rs. 2,000 billion in taxable income for the assessment years 2020 and  2021,” he told a private TV channel last evening. “We expect to  earn around Rs. 100 billion from this tax.  This is what is on page 68 in  the budget. Apparently we were expecting 100 billion at that time and  by that time we had identified 69 companies and individuals.  When we  calculate those 69 companies and individuals we will be able to collect  Rs. 105 billion,” he said.