ECONOMYNEXT – Sri Lanka will raise the withholding tax on bond interest from the current 10 percent to 14 percent, and remove an exemption on listed corporate debt, Finance Minister Ravi Karunanayake said.
Pension funds like the EPF and ETF will also be taxed at 14 percent from the current 10 percent.
Unit Trust income will also be taxed for corporates, the budget said.
An exemption on interest income of up to 5000 rupees a month has been removed.
The tax free threshold for Pay-As-You-Earn tax has been raised from 50,000 rupees a month to 100,000 rupees but exemptions have been taken away, he said.