Home / News/ Bank of Ceylon and Sampath Bank unions demand PAYE reforms

Bank of Ceylon and Sampath Bank unions demand PAYE reforms


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 13 September 2018 00:07


By Ruwandi Gamage 

The Ceylon Bank Employees Union (CBEU) called on the Government yesterday to make reforms in the Pay As You Earn (PAYE) tax, so that it does not impose restrictions on employee benefits. 

The new tax bill, which came into effect from 1 April 2018, counts employee benefits as income, and is therefore accounted for the PAYE tax. Unions also claimed the Government has also taken measures to categorise the interest rate difference between the concessionary rates offered to bank employees and market rates as an income, and tax that amount. 

The CBEU, together with the Sampath Bank Employee Union (SBEU), urged the Finance Minister to implement their proposals. They also said that if no action is taken, they will be forced to commence an island-wide strike. 

“We are not imposing on the Government, but we are urging them to consider these reforms. These are the people of the working class that have been targeted. We do not appreciate the imposing of taxes on employee benefits. The previous Government attempted similar reforms, but after negotiations with concerned parties, the reforms were dropped,” CBEU President Channa Dissanayake said.

The CBEU and SBEU stated that, though they have been given relief with the extension of the tax free limitations from Rs. 62,500 to Rs. 100,000, it is not beneficial enough to employees, as employee benefits has been taken into account as income, and the PAYE tax is being imposed on that. 

“The job as a banker is attractive because of these employee benefits. Imposing taxes on these benefits is not an acceptable reform. We are not saying we do not want to pay taxes. What we’re saying is that these new tax reforms cannot be imposed on employee benefits. They no longer will be employee benefits, and our employees will take home a lower salary than they do if these tax reforms take effect,” SBEU President Ashoka Manikgoda said.

 


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


Columnists More