On Wednesday, in the Sri Lankan Parliament President Anura Kumara Dissanayake has proudly announced the agreement which became firm after the third review with IMF (International Monetary Fund) to raise the income tax threshold from 100,000 to 150,000 per month. This would relax the citizens from paying taxes who are under lower and middle income earning individuals.
From the given informations on the IMF website, Sri Lanka currently undergoes issues in tax to GDP ratio and secured the lowest place among the other nations around the world. The concern for the future generations and the country’s balanced economy the Sri Lankan government decided to strengthen their income tax revenue and VAT. From the e-library of IMF, Sri Lanka’s Selected issues report states that, “Sri Lanka has substantial scope to mobilize revenue by strengthening income taxes and VAT… Aligning its PIT rate schedule with other Asian emerging market economies and removing sector-specific CIT exemptions could generate around 0.7 percent of GDP in additional revenue.”
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President Anura ensures that this would bridge immediate public needs and long-term economic reforms which is essential to fulfill the financial stability in Sri Lanka.
