All parties unite to approve Surcharge Tax Bill sans vote

Friday, 8 April 2022 00:19 - - {{hitsCtrl.values.hits}}

Bill passed unopposed with amendments
EPF, ETF and several provident and pension funds exempt from tax

The Surcharge Tax Bill which seeks to impose a retrospective one-time 25% surcharge tax on persons and companies with a taxable income over Rs. 2 billion for the year 2020/2021, was passed in parliament yesterday without a vote.

Chief Opposition Whip Lakshman Kiriella said the Samagi Jana Balawegaya (SJB) had decided to support the Bill given the dire economic situation in the country.

The Bill was passed with amendments which were moved during the committee stage.

These included exemptions for 13 pension and provident funds in banks and other state institutions including the Employees Provident Fund and the Employees Trust Fund.

Under the provisions of the Bill, each company of a group of companies, of which the aggregate of the taxable income of all subsidiaries and the holding company in that group exceeds Rs. 2 billion for the year of assessment commenced on 1 April 2020, will be charged the Surcharge Tax.

The tax will be imposed on the income of each such company after deducting the gains and profits from dividends received from a subsidiary which is part of such taxable income of each such company, for such year of assessment, notwithstanding that the taxable income of any one of such companies does not exceed Rs. 2 billion.

The Bill will be certified by the Speaker this week.