Government Seeks IMF Adjustment to Personal Income Tax Slabs

News Today: Government Proposes IMF to Adjust Personal Income Tax Slabs for Relief

The Government of Sri Lanka has proposed to the International Monetary Fund (IMF) to adjust personal income tax slabs, aiming to provide relief to mid-level taxpayers who have been significantly affected by recent tax reforms. This proposal was put forward following a strong performance in tax revenue this year, which has created an opportunity for potential adjustments.

According to the President’s Media Division (PMD), the IMF has responded positively to the proposal, suggesting changes that would offer more relief to lower income bands, maintain similar relief for mid-level taxpayers, and slightly reduce the relief for higher earners. The core of the proposal remains focused on easing the burden on mid-level taxpayers while ensuring a balanced approach to tax relief across different income levels.