Income tax rate reduced from 24 percent to 18 percent

• IT sector released from all taxes

By Sheain Fernandopulle  

The Government had decided to bring down the income tax rate from 24 percent to 18 percent, Co-Cabinet Spokesperson Minister Dr. Bandula Gunawardana said yesterday.   

Addressing a news briefing, he said any form of monthly earning of Rs.250,000, Rs.500,000 and Rs.750,000 and above would be imposed an income tax of 6 per cent, 12 per cent and 18 per cent respectively.   

Moreover, Dr. Gunawardana said the Information Technology sector would be released from all types of taxes and added this opportunity would further encourage individuals engaged in the IT sector especially young people.   

The Government reduced the Nation Building Tax (NBT), Capital Gains Tax, Withholding Tax and Value Added Tax.  

“The benefit of these relief packages will not be experienced overnight. The government and people will be able to gain the actual benefit by next January,” Dr. Gunawardana added.   
Meanwhile, he said no sooner President Gotabaya Rajapaksa returns to the country after his visit to India, a Defence Spokesman would be appointed so that media personnel could obtain necessary information through him.