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Friday June 18th, 2021
Economy

Sri Lanka mansion tax rules changed to capture only larger houses: report

COLOMBO (EconomyNext) – A proposed ‘mansion tax’ will be imposed on houses twice as large as originally envisaged in an interim budget, a media report said.

Sri Lanka’s Ceylon Today newspaper quoting Finance Minister Ravi Karunanayake said the tax will be imposed on houses bigger than 10,000 square feet, against the 5,000 announced in the budget.

The value has also been raised to 150 million rupees from 100 million.

Houses built after the year 2,000 will be applicable for the tax. There have been fears that ancestral houses would also be caught in the tax.

The tax put as part of measures to fund a massive salary hike to state workers in what was called a ‘robin hood’ budget.

Finance Minister Ravi Karunanayake also imposed one of taxes on companies which he said was to take back ill-gotten gains by the last regime.

Sri Lanka earlier abolished a wealth tax, and the new tax also goes against a principle of simplifying the country’s taxes.

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