INSUBCONTINENT EXCLUSIVE:
The Supreme Court has informed Speaker Mahinda Yapa Abeywardena that the Surcharge Tax Bill can be passed with a simple majority in
On an overall consideration of the provisions of the Bill, the Supreme Court had arrived at the conclusion that neither the Bill nor any of
its provision is inconsistent with Article 12 or Article 13 of the Constitution
challenged in the Supreme Court by 10 parties including main opposition Samagi Jana Balawegaya, who filed petitions claiming that the
2 billion taxable income.In 2022 Budget, it was mooted that a 25% surcharge tax be imposed on individuals or companies earning an annual
2,000 million or more.However, in the case of a partnership, the income of a partner derived from a partnership shall not be taken into
account when calculating the taxable income of such partner as an individual, if the tax has been paid by the partnership on such taxable
income.Further, on each company of a group of companies of which the aggregate of the taxable income of all subsidiaries and the holding
company in that group of companies having an income over Rs
2 billion, a 25% surcharge tax will be charged on the taxable income.It is to be a one-time tax payable by high-value taxpayers in 2022 for
their income in the tax year of 2020/21 while the objective of this special tax was to raise the necessary revenue to finance the Government
expenditure programs for the year undisturbed.Earlier this month, the Attorney General informed the Supreme Court that one-time surcharge
tax of 25% does not include 13 retirement funds including EPF and the ETF.
This article first appeared/also appeared in https://adaderana.lk
