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

Finance Minister Basil Rajapaksa has explained and assured the Cabinet of Ministers that 11 funds including the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) will be exempted from the one-time tax surcharge of 25% 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.