According to Samarasinghe, currently the tax imposed on the EPF investments is 10%, although so far it had not been levied. However, with the current taxes imposed at 14% and with the earlier 10% added the tax will increase to 24%.
He pointed out that in addition to the billions in losses to the EPF by the treasury bond scam, with the new taxes being imposed, EPF recipients will lost around 50% of their benefits.
Samarasinghe said the new tax was imposed from April 1.
Annually the tax revenue received by the Central Bank is Rs. 130 billion and with the new taxation that will increase by another Rs. 20 billion.
Samarasinghe said the Trade Unions will launch a huge protest campaign against the government’s imposition of exorbitant taxation policies.
He said they would not tolerate the huge injustice that is being meted out to the 24,70,000 EPF recipients.