Sri Lanka proposes range of taxes and import cesses

Sri Lanka has proposed sweeping levies on imported foods, and consumer durables, jacked up a turnover based levy on international trade, trimmed value added taxes and widened income tax slabs of workers in productive sectors. Personal income tax slabs had been widened with a 300,000 rupee tax free slab remaining. The next 400,000 rupee slab would be charged 5 percent (300,000 rupee earlier).
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The earlier 200,000 rupee slabs that were charged 10 and 15 percent had been widened to 400,000. A 25 percent 200,000 ruoee slab was widened to 500,000. The next 500,000 would be charged 30 percent and the balance at 35 percent.

Slabs for charging withholding tax on interest had been have also been widened. The first 300,000 rupees remains tax free.
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A 2.5 percent tax charged on interest between 300,000 to 600,000 will be increased to 1,000,000 rupees.
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A 10 percent tax rate charged from interest income threshold of 600,000 rupees would now be charged increased to one million rupees.

The airport and port development levy charged on imports and exports have been raised to 5 percent from 3 percent.

Turnover Tax

A 15.0 percent value added tax rate has been cut to 12.0 percent and a range of exemptions incre