The Frontline Socialist Party (FSP) accuses the government of committing a massive scam by paying high dividends on bank bonds amid an economic crisis while swindling pension funds of the working people.
Its propaganda secretary Duminda Nagamuwa, speaking to journalists yesterday (19) explained how the EPF and ETF are being cheated out of their earnings.
He rejected claims by the Central Bank governor in this regard.
For bonds issued by a bank, taxes are levied on the net profit, but the EPF and the ETF were forced to pay taxes on the basis of their income.
In 2022, the ETF had to pay 499 per cent of taxes on its income, after it was 88 pc in 2021 and 70 pc in 2020.
However, a total of 13 buyers at the primary market and banks had to pay 30 pc and 50 pc of taxes respectively on their profits, Nagamuwa noted.
Also, dividend payments for the bank bonds that stood at a single digit in early 2022 rose to 29 pc in April, he said, and asked as to why the EPF gets just 12 pc at the same time.
He urged the government to explain as to why those primary market buyers are excluded from the so-called debt optimization.