Marikkar questions Govt. on PAYE tax and promised relief measures

Friday, 6 December 2024 00:10 - - {{hitsCtrl.values.hits}}

MP S.M. Marikkar

Samagi Jana Balawegaya (SJB) MP S.M. Marikkar yesterday raised concerns in Parliament regarding the Government’s tax policies, particularly the Pay-As-You-Earn (PAYE) tax and the promises made by the National People’s Power (NPP) during the elections to provide tax relief.

Marikkar pointed out that the previous Government had raised the PAYE tax to 36% to collect Rs. 100 billion in revenue. However, he noted that as per available data, the Government exceeded this target, earning Rs. 140 billion from PAYE tax last year. He also noted that revenue figures from the first three quarters of this year suggest the PAYE tax revenue may surpass Rs. 200 billion by year-end. “Youth working as executives in the private sector face a double taxation burden,” Marikkar said. He explained that such persons are taxed first through the PAYE system and then face an additional 18% VAT on goods and services they purchase. Highlighting the projected additional Rs. 100 billion in tax revenue, he questioned whether the Government would extend any relief to these taxpayers.

Marikkar also criticised the NPP for failing to deliver on key campaign promises. “The NPP pledged to reduce the PAYE tax and remove taxes on food, education, and health. Will these promises be fulfilled within the five months since they were elected?” he asked, urging the Government to clarify its plans for providing tax relief and addressing the growing financial burden on the public.