PAYE tax : New decision announced

January 9, 2023 at 5:02 PM

The government has decided to prohibit state and semi-government institutions from paying the Pay As You Earn (PAYE) Tax of employees through the respective institutions’ funds, the Ministry of Finance said on Monday (09).

State Minister of Finance Ranjith Siyambalapitiya said that the circular in this regard will be issued within this week. 

The State Minister pointed out that the PAYE Tax was introduced for employees of state and semi-government institutions earning an income surpassing a specified level.

He said, however, it has been reported that the funds of state and semi-government institutions have been utilized to settle the tax payments of employees. 

State Minister Ranjith Siyambalapitiya said that thereby a decision has been taken to prevent the payment of PAYE Tax for state and semi-government employees via the institutions’ funds. (NewsWire)