Finance Minister Basil Rajapaksa proposed to impose a one-time tax surcharge of 25 percent on persons or companies with taxable income over Rupees 2,000 million for the year of assessment 2020/2021. Rupees 100 billion is expected to be earned through this tax.
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VAT on banks and financial service providers under supply of financial services by specified institutions is also proposed to be increased to 18 percent from 15 percent.
This tax should be paid monthly from 01 January 2022 to 31 December 2022. Furthermore, this tax should not be shifted to the customer. Rupees 14 billion is expected to be earned through this tax.
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