Earning  Less Than Rs.1.2Mn Per Annam Exempted from Income tax.

In a press briefing held in the Finance Ministry yesterday (21) Minister of Finance Mangala Samaraweera said, that in Malaysia 70 % of the tax income is received  in the form of  income tax. The indirect tax percentage is 28%. India collects 50% of its tax from income tax, Pakistan and Bangladesh Governments gross high revenue derive from income tax. The rest is collected by indirect taxes from consumer items in their day to day life.

But in Srilanka direct tax and indirect tax rate at the current level is 20 to 80.  In order to lessen the burden of indirect tax on consumers, it has to be revised to 40 to 60 percentage. Further, anyone earning less than 1.2 million is exempted from income tax. These are the special features in the new Inland Revenue Bill, he concluded.