PAYE Tax Relief: Government Eyes Further Increase In Tax-Free Threshold

COLOMBO (News 1st): President Anura Kumara Dissanayake says the Government expects to further increase the PAYE tax-free threshold in the upcoming Budget, providing additional relief to employees.

The current threshold, which was increased from Rs. 100,000 to Rs. 150,000, is expected to be revised further, the President said.

He noted that the Government had held discussions with private sector business associations and taken steps to increase basic salaries.

However, the President acknowledged that the basic salary increase alone was not substantial, adding that the Government had also considered other employee allowances and the tax burden on higher-income earners.

He identified the public sector, semi-government sector, plantation sector and private sector as areas that required attention.

President Dissanayake said the Government had a responsibility to safeguard employees across all these sectors and remained committed to fulfilling that responsibility.