Ravi K dismisses PAYE tax rumours
Finance Minister Ravi Karunanayake dismissed speculation yesterday
that the Pay as you Earn (PAYE) tax on salaries would be revised to Rs.
750,000 from the threshold of Rs.2.4 million slated in the Budget
The Minister dismissed the rumours saying it was mere speculation.
“There is no such thing, we are not going to revise this,” he told the
The government in the 2016 Budget raised the tax-free threshold for
PAYE tax on annual salary from Rs. 750,000 to 2.4 million, while
maintaining corporate income tax at 15 and 30 percent.
In his remarks proposing the Budget last year, the Minister said the
move to increase the figure was to provide concessions to employees.
PAYE tax above this limit is to be charged at a uniform rate of 15
percent and the taxable income will be inclusive of all the earnings of
the employee with no exemptions. He estimated a decline in revenue from
individual tax by Rs. 4 billion as given in the Appendix to the Budget