Surcharge on EPFs, ETFs: Labor Minister says there is a problem with the definition of IRD

Surcharge tax on EPF, ETF: Labour Minister says issue lies with IRD interpretation Minister of Labour Nimal Siripala de Silva says that the issue surrounding the new Surcharge Tax Bill covering the Employees Provident Fund (EPF) and the Employees’ Trust Fund (ETF), is down to the interpretation of the bill given by the chief of Inland Revenue Department (IRD).

“The Inland Revenue Department gave an interpretation before the budget, which said that as per the relevant Act, since the returns from EPF and ETF investments are an income, it must be taxed.”

The new Bill on Surcharge Tax that charges 25% from companies and individuals having an income in excess of Rs.2 billion, was gazetted on Monday (Feb. 07).