Sri Lanka personal income tax now very low: Treasury Secretary

Jan 04, 2012 (LBO) – Sri Lanka’s personal income tax rates are now very low and eligible persons should start paying taxes voluntarily, Treasury Secretary P B Jayasundera said. He said with Sri Lanka is becoming a service economy made up of self-employed and professionals working in legal, healthcare, education or information technology and income tax payments had to be voluntary.

The rates were now low was low enough to ensure compliance, he said.

Income up to 50,000 rupees a month was completely exempt and those earning up to 100,000 has to pay only 2.0 percent, he said.

“For a person earning 100,000 a month that is peanuts,” Jayasundera said. “That message must go.”

Jayasundera said doctors, lawyers and other professional were now beginning to pay income taxes voluntarily.

Under Sri Lanka’s pay as you earn scheme (PAYE) a person with 100,000 rupee of income has to pay 2333 rupees a month. A person earning 150,000 rupees has to pay 7,000 rupees and a person earning 200,000 has to pay 14,000 rupees a month.

Jayasundera said Sri Lanka was now building roads, water supply and other infrastructure are being built and people can see the changes.