The IMF-supported reform program will implement major tax reforms in Sri Lanka including making the personal income tax more progressive and broadening the tax base for corporate income tax and VAT.
Mission Chief for Sri Lanka, Masahiro Nozaki, said that a wealth tax is being considered as part of more progressive tax reform in which the tax rate increases as the taxable amount increases.
"One of the ways to ensure progressivity of tax measures is to use personal income tax including higher tax rate for high-income earners and here the wealth tax is coming in," Masahiro Nozaki told reporters in Colombo.
"On the wealth tax, I would say it is part of discussion and part of the agreement in the staff level agreement with the authorities; the preparation will take time, and how this is designed is going to be discussed with the authorities in an appropriate time frame.
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The program aims to reach a primary surplus of 2.3 percent of GDP by 2024.
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Finally Corruption is struck at its root. This is what should have happened twenty years ago along with restructuring and privatising State enterprises. It is still early days, well done to President and the Central bank team