SJB challenges Surcharge Tax Bill in Supreme Court

The Samagi Jana Balawegaya (SJB) today challenged the Surcharge Tax Bill in the Supreme Court.

SJB General Secretary Ranjith Madduma Bandara filed a petition in the Supreme Court against the Bill.

Ranjith Madduma Bandara sought the intervention of the court to declare that certain clauses in the Bill are inconsistent with the Constitution.

The Bill, which imposes a retrospective one-time surcharge tax of 25% on persons and companies with a taxable income over Rs. 2 billion for the year 2020/2021, was presented to Parliament by Leader of the House, Minister Dinesh Gunawardena this week.

The Bill has been drafted in keeping with the proposal in the 2022 Budget to impose a one-off 25% surcharge tax on individuals or companies earning taxable income more than Rs. 2 billion for the assessment year 2020/2021.

Under the provisions of the Bill, each company of a group of companies, of which the aggregate of the taxable income of all subsidiaries and the holding company in that group exceeds Rs. 2 billion for the year of assessment commenced on 1 April 2020, will be charged the Surcharge Tax. (Colombo Gazette)