Apr 12, 2017

‘14 pc tax on EPF investments’ Featured

Finance minister Ravi Karunanayake has proposed a 14 per cent new tax on Employees’ Provident Fund investments, the JVP charges.

Describing the proposal as wholly unjustifiable, party leader Anura Kumara Dissanayake says there is suspicion that a total 24 pc tax will be levied on the EPF.

Speaking to the media at the JVP headquarters in Battaramulla, he said the government had legal provisions to impose a 10 pc tax on the EPF, which had not been levied so far.

The working people should enjoy the dividends of the investments they have made with their hard-earned money and the government should not be allowed to impose taxes on it, he stressed.

The EPF has Rs. 1,350 billion belonging to 2,475,000 account holders, which is not government money, but that had been contributed by private sector employees and their employers, Dissanayake said.

The government is just the custodian of the fund, but successive governments tried to manipulate it, he said.

But, the EPF incurred a Rs. 9.6 billion loss by investing in the controversial bond issues, and much more by buying shares of bankrupt companies, the JVP leader added.