The Inland Revenue Staff Association says the personal income tax proposal in the 2025 Budget shows the government’s aim to provide relief to lower-income earners while retaining professionals in Sri Lanka.
The Association’s Secretary told the media that the personal income tax threshold will be reduced from 01 April 2025, which is a positive development.
“Per the new amendment, for an individual earning a monthly income of Rs.500,000, the income tax payable will be Rs.86,000. This is a reduction of over Rs.22,000 for that income bracket.
Similarly, an individual with a monthly income of Rs.250,000 previously paid Rs.21,000 in taxes. Under the new amendments, they will be required to pay only Rs.8000, saving around Rs.13,000,” he explained.
According to the Inland Revenue Amendment Bill, the new personal income tax thresholds are as follows;
- A monthly income of up to Rs. 150,000 will be exempt from personal income tax.
- A monthly income exceeding Rs. 150,000, will see the first Rs. 83,334 taxed at 6%, amounting to Rs. 5000.
- The next Rs. 41, 667 will be taxed at 18%, amounting to Rs. 7,500.
- The subsequent Rs. 41,667 will be taxed at 24%, amounting to approximately Rs. 10,000.
- The next Rs. 41,667 will be taxed at 30%, amounting to approximately Rs. 12,500.
- Any income exceeding this will be taxed at 36%. (Islandnews)
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