Tax – Sri Lanka Mirror – Right to Know. Power to Change

Circular to be issued on PAYE taxes

editor — Mon, 09 Jan 2023 14:04:00 +0000

State Minister of Finance Ranjith Siyambalapitiya says that a circular will be issued by the Finance Ministry, prohibiting state and semi-government institutions from paying the PAYE tax of employees through the respective institutions’ funds.

The State Minister revealed that the relevant circular will be issued within this week.

The PAYE tax has been imposed as a tax to be paid to the government by individuals who earn an income beyond a certain limit, while some state institutions and semi-government institutions have previously been paying the relevant tax, Siyambalapitiya stressed.

Furthermore, he also emphasizes that such irregularities cannot be allowed in view of the current economic situation of the country.

“If anyone earns more than a certain limit, they are subject to the PAYE tax even if it is the government, semi-government or the private sector”, he said.

“But previously, especially in the semi-government sector and in corporations, we have experienced cases where the PAYE tax is paid by the relevant intuition itself under certain service agreements”.

“This is not the time for such inefficiencies”, he added.

The State Minister also expressed that a clear circular will be issued to all government and semi-government institutions preventing such tax payments, after clearly looking into the issue.

(adaderana.lk)

(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

Excise duty on liquor & cigarettes upped by 20%

editor — Tue, 03 Jan 2023 12:38:49 +0000

The Finance Ministry today (03) announced that the excise duty for all varieties of liquor and cigarettes will be increased by 20% from midnight today (03).

State Minister of Finance Ranjith Siyambalapitiya said that excise duty on all varieties of liquor, including wines, beer etc. will be increased by 20%.

Due to the 20% increase of Excise Duty on liquor, the prices of a bottle of 750ml Special Arrack will be increased by Rs. 206, locally brewed foreign liquor by Rs. 266, Beer (Vol. 4.8% – 625ml) by Rs. 21 & Beer (Vol. 8.8% – 625ml) by Rs. 39.

He added that the excise duty for cigarettes is increased with effect from the 01st of January 2023.

CESS tax on multiple items amended

editor — Wed, 16 Nov 2022 14:49:39 +0000

The rate of CESS levy imposed on a total of 637 items under 187 HS codes has been amended with effect from yesterday (Nov. 15)

In his capacity as the Minister of Investment Promotion, President Ranil Wickremesinghe has issued the relevant government notification on November 14, by virtue of the powers vested in him by Section 14 of Export Development Act No. 40 of 1979.

Thereby, the prices of imported items such as butter, dairy spreads, cheese, curd, onions, garlic, several vegetables and fruits, soap, wet wipes, cement, notebooks, exercise books, air conditioning machines, household or laundry washing machines, and ballpoint pens will be increased.

The Ministry of Finance, however, noted that the CESS rate revision will affect the prices of any imported essential items.