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CEB unions want salaries increased if Payee tax is to be deducted
by Ifham Nizam

A number of Ceylon Electricity Board trade unions yesterday said if they were to pay the payee tax then their salaries have to be increased, because the `take home’ salary cannot be decreased.

The debt ridden CEB has a workforce of nearly 14,500 and pays the payee tax for a majority of the workers.

CEB Joint Trade Alliance Convener Ananda Nimalaratne told The Island yesterday that the Board had been paying the payee tax for nearly 10 years.

"If this system is to be changed, then the CEB is asking for trouble. Like the CEB, other institutions such as the Water Board and Ports Authority pay the payee tax on behalf of the employees," he said.

He also pointed out that more than the Inland Revenue Department, the Auditor General and others are also keen that the CEB employees are made pay the payee tax.

All those who get a salary of Rs 300,000 or more annually are liable to pay the payee tax In that case, even a lowest paid labourer, who draws about rupees 16,000 per month plus incentives, allowances and bonuses become entitled to pay the payee tax, he added.

A senior engineer of the CEB said: "If they want us to pay the payee tax then our salaries should be increased since our take home salary cannot be reduced."

He was of the view that if it is illegal for the CEB to pay the tax then there must be legal provision to act against it.

The Janatha Vimukthi Peramuna backed Lanka Viduli Sevaka Sangamaya said despite the taxed amount being very small the employees would not agree to pay it.

Meanwhile, Power and Energy Minister W. D. J. Seneviratne earlier this week told The Island that the Attorney General had pointed out that some CEB workers received tax refunds from the Inland Revenue Department despite their payee tax being paid by the institution.

 

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