Aug 21, 2017

No income tax for less than Rs. 1.2 m annual earnings (video) Featured

The revised draft of the Inland Revenue Act will be tabled in parliament on August 25, said Finance Minister Mangala Samaraweera.

Speaking to media today (21), he said it contained 111 amendments as recommended by the Supreme Court.

Samaraweera said Malaysia earned 70 per cent of its tax revenue from income tax, while indirect taxes amounted to 28 pc only.

In India, more than 50 pc earnings come from income tax, and income tax levels in Pakistan and Bangladesh too, are high, he said, adding the balance comes from indirect taxes imposed on consumer goods.

He said the government intended to bring the present 20 pc and 80 pc direct and indirect taxes to 40 pc and 60 pc within the next few years.

The Finance Minster stressed that no one having an annual income of less than Rs. 1.2 million would have to pay income tax.

Those who love the country and earn high incomes should not oppose the new act, and only the politicians depending on black money would be opposing it, he said.

Speaking to journalists, State minister of Finance - Eran Wickremaratne said that the Bill which will be tabled in parliament,is an progressive one. He added that this Bill will be beneficial to all including investors.

Related articles:

IMF introduces Ghana’s new tax law for SL's new IR Bill

New act will broad base, simplify the tax system

IRD gears up to implement the new Inland Revenue Act

‘New Inland Revenue Act doubles tax on interest income’

Revised Inland Revenue Bill on Aug. 25

JO to petition against Inland Revenue bill