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IRD says no new tax but easy payment method introduced
View(s):The Inland Revenue Department reiterated this week that the recently introduced Advance Personal Income Tax (APIT) is not a new tax but only an easy payment method designed to cater to the requests made by tax paying employees’ and investment holders’. And further, it does not withdraw any tax cut granted recently by the government. Drawing attention to the news article published by the Sunday Times last week, Deputy Commissioner General R M Jayasinghe said that APIT is merely “an easy mechanism for the payment of income tax to the comfort of income tax payers.”
The Sunday Times news report said that the Pay As You Earn (PAYE) Tax and the Withholding Tax (WHT), which were scrapped by the new government in January, have been introduced under new categories of Advance Personal Income Tax (APIT) and Advance Income Tax on a voluntary basis.
The Department also pointed out that the corporate tax rates mentioned in its notice published by the Inland Revenue Department on 08.04.2020 are the same reduced rates announced by the Government under the recent tax concession scheme.
(Please see Business Times page 1 today)