Government says only 2.6% of Sri Lanka’s total workforce subject to PAYE tax

11 February 2023 12:06 am - 15 - {{hitsCtrl.values.hits}}

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The government insisted that only 2.6 percent of Sri Lanka’s total workforce of 4.64 million are subjected to the pay-as-you-earn (PAYE) income tax, with nearly half of the labour force receiving a less than Rs.30,000 monthly salary.

“The country’s workforce consists of 4,645,572 people. Forty-eight percent of the labour force or 2,231,620 people receive a less than Rs.30,000 salary monthly. Only 120,965 persons or 2.6 percent of the labour force, who are earning over Rs.100,000 per month, are subjected to the PAYE tax,” Finance State Minister Ranjith Siyabalapitiya told Parliament yesterday.

With the state expenditure for the year estimated at Rs.5.42 trillion, he stressed that there is no alternative other than the ongoing taxation measures targeted at enhancing state revenue to Rs.3.65 trillion for the year, which is critical to pay for the essential recurrent expenditures.

“In January, the gap between revenue and expenditure was at 350 percent. Despite these circumstances, we cannot print money, we cannot borrow from abroad and we have reached the borrowing limit from domestic banks,” Siyabalapitiya added.

Currently, monetary financing has been restricted to service interest payments to creditors, as the country is under debt restructuring negotiations with its external creditors and the International Monetary Fund.

Meanwhile, Siyabalapitiya pointed out that 3.91 million families, out of 5.8 million families, are seeking state assistance to continue their livelihoods. Therefore, he urged everyone to play their role in this critical period to emerge out of this crisis despite the financial strain.

“At this juncture, we all need to fulfil the responsibilities that befallen us more or less. We need to bear this stress. The time has arrived for us to think responsibly,” he said.

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Comments - 15

Sam Saturday, 11 February 2023 08:58 AM

The problem is that the 'essensial' reoccurring expenditure is not essential. It's the payment of ridiculous pensions and salaries for staff you just don't need. In short we do not trust you with our money.

sathees Saturday, 11 February 2023 09:13 AM

Reduce state expenses! simple as that

Saraswathydasan Saturday, 11 February 2023 09:13 AM

this is what most of us say, that only a small percentage of people paying tax and others not paying tax. It’s not dur to their low income but because they don’t show the income. The 30000 rupees story is really unbelievable as even beggars is reported to have millions in bank accounts ( reported in daily mirror itself few months ago) Also farmers, teachers and shop owners have no income proof and deceive I don’t have to say about politicos. So Atkeast all burden is carried by a small group of people who are employed in government and private institutions. In addition there is no transparency of finances and wastage and corruption is rampant This needs to be changed. All should be treated equally and all the money collected should be used for the betterment of people and development od the country.

anura hettiarachchi Saturday, 11 February 2023 09:18 AM

As a nation it is a disgrace to proudly announce many people atre not taxed because they do not earn a decent salary to meet at least their ends need...

anil Saturday, 11 February 2023 09:34 AM

so what the govt. is saying is that 2.6 % of the population is maintaining the 97.4% of the population

Perera Saturday, 11 February 2023 02:59 PM

No, you are wrong! Everyone one of us are paying VAT when we buy goods and services. Those who have bank depositsare paying withholding tax. Businesses and investors are paying relevant business taxes.

Indika Saturday, 11 February 2023 10:24 AM

PAYE is only one source of income. However there appears to be non-compliance by businesses. It should be made a requirement that the auditors of the companies sign off that the statutory requirements viz a viz tax deductions have been carried out as required by their client. There should be prohibitive penalties on the companies and it directors for any detected failure to do so.

Haritha Saturday, 11 February 2023 10:28 AM

With such a large public service sector, given their employees are not taxed on their employment income anyway, these statistics may not be entirely surprising.

johan Saturday, 11 February 2023 10:39 AM

All his figures are cockeyed not actual. Rs.30000/- means i.e.trainee allowance not salary.How can a family live with this salary.To cover an untruth another untruth is discovered by him

pradeep Saturday, 11 February 2023 01:22 PM

what this means is that since only 2.6% are protesting about the high taxes, the Govt. does not care as they have the support of the rest of the non tax paying citizens who are not affected by this high tax

jaya Saturday, 11 February 2023 02:09 PM

Strange 20,000 doctors 50,000 nurses 25,000 bank employees 8,000 in harbour 4,000 in ceypetco 4,000 in ceb That's without any private sector

Citizen k Saturday, 11 February 2023 04:02 PM

What about the indirect taxes where the goverenment takes in huge amount of money and tax 100% percent on those who looted the treasury and don't forget to add the compound interest only then we will have s better quality of life.

Spartacus Saturday, 11 February 2023 07:25 PM

So this 2.6% are the persons who pay for all the public expenses from free hospitals to ministerial salaries to armed forces to free education.

Maha Saturday, 11 February 2023 08:18 PM

The message is very simple, protesting only 2.6% of working segment. The Govt indicates don't care policy for protesters. Therefore, Trade Unions must together formulate strategy how to respond to the Govt in coming days.

Lal Sunday, 12 February 2023 03:06 PM

What about businesses? There are over 1 million micro, small, medium and large businesses in Sri Lanka. Let's take micro businesses out, say 75%. Out of the remaining 25% how many SME and L businesses pay taxes properly? Why only blame employed people?

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Government says only 2.6% of Sri Lanka’s total workforce subject to PAYE tax

Comments - 15

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