Key Takeaways
- The Sri Lankan government proposes personal income tax relief by adjusting tax slabs.
- The IMF has suggested more relief to lower slabs, similar relief for mid-level, and slightly less for higher income earners.
- The current maximum limit of personal income tax is 36 percent.
Colombo: The Sri Lankan government has proposed, to the International Monetary Fund (IMF), a personal income tax relief by adjusting tax slabs, the President’s Media Division (PMD) said in a statement on Wednesday.
Sri Lanka has seen a strong increase in tax revenue so far in 2024. 500,000 rupees was the previous tax slab limit, but the government has proposed increasing it to 720,000 rupees.
The IMF, after considering the proposal, suggested more relief to lower slabs, similar relief for mid-level and slightly less for higher income earners, keeping the proposal’s core intact, the PMD said.
The current administration raised the maximum limit of personal income tax to 36 percent from 24 percent and brought the taxable monthly income to 100,000 rupees (about 330 U.S. dollars) from 250,000 rupees (about 835 U.S. dollars) following the 2022 economic crisis in the South Asian country.
