Several state sectors suspending paying new PAYE tax : SLASA raises concern & put forward 5 new proposals

January 27, 2023 at 11:50 AM

The Attorney General has requested the Court of Appeal to provide an opportunity to present facts pertaining to the injunction order that has been issued preventing the implementation of the decision taken by the Inland Revenue Department to reduce the Pay As You Earn (PAYE) Tax of judges.

The Court of Appeal on Wednesday issued an injunction order preventing the decision from being implemented after taking up for consideration the petition filed against the decision by the Sri Lanka Judges and Magistrate’s Association.

The Attorney General yesterday requested the court to grant an opportunity to present facts in this regard.

Thereby, the Court of Appeal fixed for hearing the petition on 09th February 2023.

Meanwhile, Sri Lanka Administrtive Service Association has also shown it’s dissent over the new taxation policy.

In a letter to the Ministry Finance, the association has pointed out that certain state sectors have suspended the payment until further advice from Finance Ministry.

Accusing that same policy should be applied for all state sectors without any bias, the organisation has forwarded new suggestions for a fair tax policy which includes changing the new tax free amount to Rs 300,000 from the newly implemented Rs 100,000.

Sri Lanka Administrtive Service Association also requests to bring down the top tax bracket to 24% from the current 36% and not to calculate allowances to be part of the taxes.

The organisation warned of a trade union action with other unions if government not implement their demands.