New payee tax scheme in Sri Lanka

[Saman]

CURRENT RATES:
Tax Slab (Rs.) Rate (%)
First Rs. 300,000 Nil
Next Rs. 400,000 5%
Next Rs. 400,000 10%
Next Rs. 400,000 15%
Next Rs. 500,000 20%
Next Rs. 500,000 25%
Next Rs. 500,000 30%
Balance @ 35%

NEW RATES:
Tax Slab (Rs.) Rate (%)
First Rs. 600,000 Nil
Next Rs. 500,000 4%
Next Rs. 500,000 8%
Next Rs. 500,000 12%
Next Rs. 500,000 16%
Next Rs. 1,000,000 20%
Balance @ 24%

See more at http://inlandrevenue.gov.lk/publication ... 1112_E.pdf

[Nipuna]

Cool, Decreased

But the Problem is I don't get such Salary I am not doing a Job and I can't Imagine will I get such Salary even i did a Job

[Rksk]

I can't understand these works of SriLankan Government. They don't get much from the RICH and get more & more from the POOR.

[Saman]

I can't understand these works of SriLankan Government. They don't get much from the RICH and get more & more from the POOR.

This is about payee tax. Payee tax is the tax that is deducted from salary paid employees. Not income tax from businesses which is a different subject. If it is business tax, then you might be correct. But payee tax is a different subject. Let me explain you a bit.

Say this is about a software engineer. You know there are lots of opportunities in the world for them. Only a few good guys stay and work here just because they love the country or they have some commitments here. Rest are living a luxurious life abroad. The guys who work abroad are not likely to come since they got used to that life. If the government pushes the employees to pay more payee tax, no wonder all software engineers will migrate and start living that luxury west life. So the government always has to be tricky enough to keep them here so that foreign income will reach the country.

I agree with you, the Government should gain taxes from businesses, business owners who earn from poor people's strength, contractors who work on buildings, bridges, roads, harbours, airports, etc.... But the government should never discourage people who work from here. If all of them decide to leave the country (especially for software engineers it is a simple matter), the country will lead to a disaster.

If the government loose these people, it would be a disaster. The government should encourage Sri Lankan professionals who are working abroad (mostly engineers) to come and work from here so the government can earn some foreign income to buy fertilisers for farmers for example. I think the government has understood this crisis (brain drain) and the reduction of payee tax is kind of a good start to fix it.

[Neo]

Yes...correct.
RKSK, this is payee tax. Not business tax. I think you misunderstood payee tax.

As explained clearly, payee tax is something paid by employees. People who work has the right to earn as much as possible based on their ability. If it is restricted here, can't avoid they will fly away.
People who earn from poor people (usually business owners) must pay a big tax so that the government can take care on poor.

[Rksk]

Sorry, i misunderstood that.

I told about busines tax. The government has reduced tax for luxurious good. but forget poors.

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