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TUs welcome MR’s about-turn on imposition of new taxes
View(s):Trade unions have welcomed President Mahinda Rajapaksa’s decision to remove newly imposed taxes on public and private sector employees, but await fresh gazette notifications to ensure there are no implications on the employees.
President Rajapaksa who met with Ceylon Bank Employees’ Union (CBEU) representatives on Monday, said the tax imposed on housing loans, distress loans, vehicle loans, reimbursement of medical expenses and overtime payments will be removed.
The Sunday Times last Sunday exclusively reported that more taxes have been imposed on public and private sector employees, and the trade unions were opposing the move. The taxes were to be implemented with retrospective effect from April 1, 2012
CBEU Secretary Ashoka Dharmasiri told the Sunday Times they pointed out to the President that revenue from these taxes would not bring much to the government, while imposing a better tax collection system will help increase revenue.
Joint Convenor of Government, Semi-Government and Private Sector Professionals’ Association Kesara Kottegoda told the Sunday Times that, though a pledge had been given to remove taxes, so far a fresh gazette notification has not been issued.
“We will be closely monitoring the situation and await the new gazette notification, so that there will be no imposition of these taxes on the employees,” he said.
An Inland Revenue Department officer said that due to this decision, part of the anticipated revenue will be lost, but it would go ahead and implement the rest of the gazette notification.