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.
The PMD said that Sri Lanka has seen a strong increase in tax revenue so far in 2024. The government asked the IMF to adjust Personal Income Tax slabs from 500,000 rupees (about 1,670 U.S. dollars) to 720,000 rupees (about 2,400 U.S. dollars), the PMD said.
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.
