Bankrupt Sri Lanka hikes taxes

31/5/2022 5:00:00 PM

Bankrupt Sri Lanka hikes taxes

Sri Lanka, Taxes

Bankrupt Sri Lanka hikes taxes

COLOMBO — Cash-strapped Sri Lanka on Tuesday (May 31) announced steep, across-the-board tax hikes to shore up revenue as the country suffers its worst economic downturn and seeks an International Monetary Fund (IMF) bailout.

The personal income tax exemption threshold was lowered from 3.0 million rupees (S$11,400) a year to 1.8 million rupees.The increases were a rollback of the generous cuts ordered by president Gotabaya Rajapaksa soon after he won the November 2019 elections.

Prime minister Ranil Wickremesinghe, who is also the finance minister, said Mr Rajapaksa's tax cuts cost the state some 800 billion rupees annually and widened the budget deficit sharply.International rating agencies, as well as independent economists, have pointed to Mr Rajapaksa's fiscal policy as having fuelled the current financial crisis.

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Bankrupt Sri Lanka hikes taxesCOLOMBO: Cash-strapped Sri Lanka on Tuesday (May 31) announced steep, across-the-board tax hikes to shore up revenue as the country suffers its worst economic downturn and seeks an IMF bailout. The value-added tax (VAT) applied on almost all goods and services was raised from 8 per Sama macam IsmailSabri60 tengah pikir nak kembalikan GST

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The value-added tax (VAT) applied on almost all goods and services was raised from 8.LinkedIn COLOMBO: Cash-strapped Sri Lanka on Tuesday (May 31) announced steep, across-the-board tax hikes to shore up revenue as the country suffers its worst economic downturn and seeks an IMF bailout.Copy to clipboard https://str.Copy to clipboard https://str.

0 per cent to 12 per cent with immediate effect, while corporate taxes were also increased from 24 to 30 per cent. The personal income tax exemption threshold was lowered from 3. The personal income tax exemption threshold was lowered from 3 million rupees (US$8,330) a year to 1.0 million rupees (S$11,400) a year to 1. "The implementation of a strong fiscal consolidation plan is imperative through revenue enhancement as well as expenditure rationalisation measures in 2022," Mr Wickremesinghe's office said in a statement.8 million rupees. The increases were a rollback of the generous cuts ordered by President Gotabaya Rajapaksa soon after he won the November 2019 elections. The increases were a rollback of the generous cuts ordered by president Gotabaya Rajapaksa soon after he won the November 2019 elections. Sri Lanka has been plagued by a dearth of necessary items, power cuts and rampant inflation, leading to public protests calling for the ouster of President Gotabaya Rajapaksa.

Prime minister Ranil Wickremesinghe, who is also the finance minister, said Mr Rajapaksa's tax cuts cost the state some 800 billion rupees annually and widened the budget deficit sharply. International rating agencies, as well as independent economists, have pointed to Rajapaksa's fiscal policy as having fuelled the current financial crisis.8 per cent set in April. International rating agencies, as well as independent economists, have pointed to Mr Rajapaksa's fiscal policy as having fuelled the current financial crisis. Mr Wickremesinghe, an opposition legislator, was made prime minister this month. His predecessor and the president's elder brother Mahinda stepped down after months of anti-government protests turned deadly. His predecessor and the president's elder brother Mahinda stepped down after months of anti-government protests turned deadly. Withholding tax on employment income has been made mandatory and exemptions for individual taxpayers have been reduced, the statement said. The South Asian nation is in talks with the IMF for a bailout after running out of dollars to pay even for the most essential imports such as oil, food and medicines. Sri Lanka has also defaulted on its US$51 billion foreign debt. Emirates didn't immediately respond to a request for comment.

Sri Lanka has also defaulted on its US$51 billion foreign debt. Mr Wickremesinghe said he was also removing several tax breaks granted to companies in recent years. The government did not say how much it will raise from the new tax measures. The tax cuts caused annual public revenue losses of about 800 billion rupees, the prime minister's office said in its statement. The government did not say how much it will raise from the new tax measures. However, the prime minister had said they had run out of rupees to pay the salaries of 1.5 million civil servants and would have to"print money".5 million civil servants and would have to"print money".6 per cent of GDP two years earlier." The Indian ocean nation has been trying to come up with cash to pay for oil that's been sitting on tankers off its coast as its fuel crunch persists.

That would in turn fuel inflation, which is already at a record 33.8 per cent.8 per cent. AFP Related topics .