11 funds including EPF/ETF exempt from Surcharge Tax

Eleven workers’ social security and welfare funds including the Employees Provident Fund and the Employees Trust Fund have been exempted from the controversial 25 per cent

Surcharge Tax.

This decision was taken by Finance Minister Basil Rajapaksa under mounting pressure from government and opposition legislators, trade unions and associations of social service activists, informed sources said.

A collective of trade unions politicians and social service activists representing several sectors have said funds of workers should not be taxed in any decent society to compensate for the loss of government revenue due to financial mismanagement and lack of clear economic policy.

The Finance Minister assured the Cabinet of Ministers on Monday that 11 funds will be exempted from the one- time tax surcharge proposed in the 2022 Budget.