Sri Lanka to introduce property tax and gift and inheritance tax
Posted on March 23rd, 2023
Courtesy The Daily Mirror
Sri Lanka is expected to introduce a property tax and a gift and inheritance tax by the beginning of 2025, under the International Monetary Fund programme.
In particular, we will introduce a nationwide real property tax and adjust the system of transfers between the central and provincial governments.
We will also introduce a gift and inheritance tax with a tax-free allowance and minimal exemptions,” the IMF programme documents made public this week said.
The preparatory work for these tax reforms will commence by mid-2023, supported by the IMF technical assistance.
Sri Lanka is expected to achieve a primary fiscal surplus of 2.3 percent of GDP by 2025.
Also, Sri Lanka needs to raise the tax-to-GDP ratio to least 14 percent by 2026 by implementing a sequenced package of tax measures.