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Workers must not be taxed to compensate for loss of state revenue due to mismanagement – trade union collective

Published

4 years ago

2022/02/12

Opposition to the proposed surcharge tax of 25 percent on workers’ social security and welfare funds is growing with a collective of trade unions representing several sectors alleging that workers are not taxed in any decent society to compensate for the loss of government revenue due to financial mismanagement and lack of clear economic policy.

Anton Marcus, Joint Secretary, Free Trade Zones and General Services Employees Union has issued the following statement on behalf of Free Trade Zones and General Services Employees’ Union (FTZ & GSEU), Sri Lanka Nidahas Sevaka Sangamaya (SLNSS), Ceylon Mercantile and Industrial Workers’ Union (CMU), Ceylon Federation of Trade Union (CFTU), Intercompany Employees’ Union (IEU), Ceylon Bank Employees Union (CBEU), Lanka Jathika Estate Workers Union (LJEWU), National Union of Sri Lankan Seafarers (NUSS), Jathika Seva Sangamaya (JSS), Ceylon Estate Staff Union (CESU), United Federation of Labour (UFL), and the Joint Plantation Trade Union Centre (JPTUC): The Government’s decision by way of a gazette notification issued on 07 February 2022 for a bill to be presented in pPrliament to levy a “one-time” Surcharge Tax of 25 per ent on the gross income of over Rs.02 billion during the revenue year 2020 April 01 to 2021 March 31, will include both the “Employees’ Provident Fund” (EPF) and the “Employees’ Trust Fund” (ETF) as provided for under “Division III: Trusts and Unit Trusts” of the Inland Revenue Act, No. 24 of 2017.

This we say is both immoral and unethical as social security and welfare funds of employees and also the poor are never taxed in any decent society to compensate for the loss of revenue for the State due to financial mismanagement and lack of clear economic policy.

It is calculated the EPF alone would be taxed around Rs.62 billion once again on its already taxed income for the revenue year 2020-2021 that concluded almost a year ago. This massive amount of money that could be taxed from the EPF alone, with more tax from the ETF too is money that should be divided among 2.9 million employees who are active contributing members of the EPF and 19.4 million members in all.

We wish to note, the previous government too imposed a one-time tax levy on the EPF in 2016 that was promised as never to be repeated. Sadly, it is coming back again as another “one time only” Surcharge Tax that now becomes a precedent for all governments in the future for “easy revenue”.

EPF is a social security and welfare fund for private and semi-State sector employees with no monthly retirement salary to tide over their last years out of employment. This fund needs to be further strengthened for the private sector and semi-State sector employees with health benefits and other emergency welfare services. It is disgusting therefore to have governments compensating their inability to manage national finances efficiently, squeezing off large chunks of money from employee benefits, instead.

As a collective of trade unions in the National Labour Advisory Council (NLAC), we wish to demand from this government to immediately withdraw all provisions in the proposed bill gazetted on 07 February (2022) in levying any tax by any name, from employee social security and welfare funds, be it the EPF, ETF or any other and request the government to seek more progressive measures in collecting required revenue for the State.

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Heat Index at Caution Level in the Northern, North-central and North-western provinces and in Kegalle, Trincomalee and Batticaloa districts during the day time

Published

1 hour ago

2026/04/29

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 28 April 2026, valid for 29 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central and North-western provinces and in Kegalle,
Trincomalee and Batticaloa districts during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

News

Treasury chief’s citizenship details sought from Australia

Published

3 hours ago

2026/04/29

Sahan Weerasooriya

Nagananda / Harshana

New controversy erupts over missing USD 2.5 mn:

Public interest activist Nagananda Kodituwakku has sought citizenship details of Finance Ministry Secretary Harshana Suriyapperuma from the Department of Home Affairs, Australia.

According to a letter dated 28 April, addressed to the relevant department, Solicitor England and Wales Kodituwakku sought the required information in terms of Section 15 of the Freedom of Information Act No 3 of 1982 of Australia. Suriyapperuma is also the Secretary to the Treasury.

The former Deputy Minister of Finance and Planning Suriyapperuma (from November 2024 to June 2025) is embroiled in a deepening controversy over the theft of USD 2.5 mn from the Treasury.

The leader of the Vinivida Foundation said that he intended to move court against Suriyapperuma for entering Parliament through the NPP National List in violation of the country’s Constitution (Article 91(1)(d)(xiiii).

Kodituwakku said: “This is clearly an accountability and integrity issue and violation of the Constitution of Sri Lanka and also this act contravenes the law of a member in the Commonwealth.”

USD 2.5 mn paid to a third party was meant to be an instalment of a loan taken from Australia. Suriyapperuma neither responded to an SMS nor answered his hand phone.

Geetha Kumarasinghe (UPFA/Galle District) and Diana Gamage (SJB National List) lost their seats in 2017 and 2024, respectively, over citizenship issues.

Meanwhile, public interest group ‘Free Lawyers’ that exposed the theft of Treasury funds questioned the failure on the part of Dr. Harsha de Silva, Chairman of Committee on Public Finance (CoPF), to pressure President Anura Kumara Dissanayake to temporarily remove Suriyapperuma to facilitate unhindered investigations.

On behalf of ‘Free Lawyers’, Rajith Keerthi Tennakoon yesterday expressed concern over the way the CoPF, under SJBer de Silva’s leadership, handled the issue at hand. Issuing an open letter, Tennakoon, urged the CoPF chief to explain his stand on a spate of vital issues which needed to be addressed without any further delay.

By Shamindra Ferdinando

News

President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara

Published

3 hours ago

2026/04/29

Sahan Weerasooriya

President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara (Sue Tue Nhan) at the conclusion of the 161 km ‘International Peace Walk’ in Colombo yesterday. The Bo-sapling will be taken to the US by the spiritual leader. Pic by Sujata Jayaratne