To reach a primary fiscal surplus of 2.3 percent of GDP by 2025, Sri Lanka will revamp the property tax system and introduce a wealth transfer tax.
In particular, Sri Lanka will introduce a nationwide real property tax, and adjust the system of transfers between the central and provincial governments.
"Wealth tax is part of our program agreed between us and the authorities. The introduction of property tax and wealth transfer tax is envisaged in 2025," Masahiro Nozaki, Mission Chief for Sri Lanka told reporters.
"That takes a little bit of time because of the preparation. For example, asset evaluation takes some time to prepare and develop."
Sri Lanka and IMF have also agreed to introduce a gift and inheritance tax with a tax-free allowance and minimal exemptions. Preparatory work for these tax reforms will commence by mid-2023, supported by IMF technical assistance.
Positive approach towards a healthy nation, provided corruption is kept at 0 zero point!!!
What is worth taxing wealth, if in rural Sri Lanka majority of people own and live on a 1/8-1/4 acre plot of land; for that matter are these people’s property taxes going to be increased .?