Circular to be issued preventing state, semi-govt institutions from paying employees’ PAYE taxes

 

State Minister of Finance Ranjith Siyambalapitiya says that a circular will be issued by the Finance Ministry, prohibiting state and semi-government institutions from paying the PAYE tax of employees through the respective institutions’ funds.

The State Minister revealed that the relevant circular will be issued within this week.The PAYE tax has been imposed as a tax to be paid to the government by individuals who earn an income beyond a certain limit, while some state institutions and semi-government institutions have previously been paying the relevant tax, Siyambalapitiya stressed.

Furthermore, he also emphasizes that such irregularities cannot be allowed in view of the current economic situation of the country.