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Tuesday September 28th, 2021
Economy

Sri Lanka denies 5-pct tax on wage earner tax after 1-pct tax on undeclared funds

ECONOMYNEXT – Sri Lanka has not made an official decision to tax persons earning wages above 100,000 rupees, a senior minister said after parliament passed a law to legalize unpaid taxes at a 1 percent fee.

Trade Minister Bandula Gunewardene had proposed a 5 percent tax on persons earning over 100,000 rupees a month.

“That is private proposal of the Minister Bandula,” Information Minister Dulles Alahapperuma said. “It has not been discussed in Cabinet.”

The tax proposal came as parliament passed an amnesty for those who had undeclared wealth including from unpaid tax.

Opposition legislators objected to giving an amnesty to value-added tax defaulters.

Value-added tax is not paid by businesses on income or revenue earned, it is charged on top of revenue from customers as an agent of the state.

Sri Lanka’s state finances had been hit by a value-added tax cut in December 2019 amid a Coronavirus crisis, triggering money printing and currency crisis.
(Colombo/Sept15/2021)

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