The PAYE tax payable by an employee who draws Rs. 200,000 a month is Rs. 7,500. His savings stands at Rs. 5,800 from the current fuel and gas price reduction. As such, he or she has to pay only Rs. 1,700 as payee tax, Cabinet Spokesman and Mass Media Minister Dr Bandula Gunawardana said yesterday.
The trade gap of Sri Lanka between 2001 – 2007 stands at US$ 25.5 billion and the IMF wants to minimize this to a manageable level by 2028 by improving the dollar and rupee account of the Government, he added.
The PAYE tax hike of public and private sector employees and divestment of State Owned Enterprises (SOEs) are aimed at improving the State revenue to 20% from the current 8% but with economic recovery, the benefit would be passed onto the Public Servants, he added.
