COLOMBO, Sept. 13 (Xinhua) -- The Sri Lankan government announced proposed adjustments to the personal income tax structure on Friday, which will come into effect in April, next year, according to the president's media division (PMD) on Friday.
The PMD said these changes aim to maintain fiscal responsibility while providing relief to those most affected by tax reforms introduced in early 2023.
The initial reforms included a tax-free threshold set at 1.2 million Sri Lankan rupees (5,310 U.S. dollars) per annum, with tax bands of 500,000 (1,660 U.S. dollars) Sri Lankan rupees each, and a marginal tax rate of 6 percent up to a maximum 36 percent, the PMD said.
The government now proposes increasing the tax bands to 720,000 Sri Lankan rupees (2,389 U.S. dollars) while keeping the tax-free threshold at the same level and maintaining the marginal tax rates at each band, including the top rate of 36 percent, the PMD added. ■
