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 tax-free 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. He added that the Government had also considered other employee allowances and the tax burden on higher-income earners.
Identifying the public, semi-government, plantation and private sectors as areas requiring attention, President Dissanayake said the Government had a responsibility to safeguard employees across all these sectors.
He added that the Government remained committed to fulfilling that responsibility.
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