Any person of an annual income of and over Rs. 1.2 million will be liable to income tax, as per a decision by the government.
Simply put, a person of a monthly income of over Rs. 100,000 will have to pay income tax to the government.
The relevant Cabinet paper will be presented in the Cabinet soon and the matter will be in effect from October 01, 2022.
These income tax rates are as follows;
- An annual income of Rs. 1.2 – 06 million – 06 per cent
- An annual income of Rs. 05 – 10 million – 12 per cent
- An annual income of Rs. 10 – 15 million – 24 per cent
- An annual income of Rs. 15 – 20 million – 30 per cent
- An annual income of over Rs. 20 million – 36 per cent
These tax rates were imposed during the previous good governance regime, but were revised immediately after Gotabaya Rajapaksa became the President, making the minimum limit for income tax Rs. 03 million in annual income.
These tax revisions are also a mandatory part of the requirements by the staff-level agreement with the International Monetary Fund (IMF), according to sources.