The election manifesto of the Samagi Jana Sandhanaya Presidential candidate MP Sajith Premadasa outlines the changes it will make concerning the Pay As You Earn Tax (PAYE).
The election manifesto, titled ‘A win for all’, states that the unfair burden-sharing structure of the International Monetary Fund (IMF) supported tax code revision that is forcing professionals to seek employment abroad, will be revised.
“The solution to increase government revenue is not confined to raising taxes. One of our first acts will be to introduce digital technology to increase revenue, and minimize expenditure and corruption,” the manifestos states.
As per the election manifesto, some highlights of the revised structure that will not disturb the overall revenue targets, but will reduce the heavy burden on the middle class, are as follows:
Personal Income Tax:
Personal income tax after the Tax-free slab of Rs 100,000 per month will start at just 1% and increase up to 24% income up to around half a million per month. Thereafter, current rates will apply to high-income earners.
Corporate Income Tax:
We intend to reduce up to 6% from the present 30% rate for profits on exports and introduce a 15% Base Erosion and Profit Shifting (BEPS) minimum alternate tax for multinational companies.
Value Added Tax (VAT) :
We intend to reduce VAT to 15% once tax compliance improves through the use of Public Digital Infrastructure to widen the tax net. Certain identified items in addition to essential food as consumables and inputs shall be made zero-rated for VAT.
Excise tax on cigarettes and alcohol and taxes on casinos will be adjusted to fund tax reductions.
A guaranteed up to 15% savings interest rate will be provided for senior citizen savings. (Newswire)
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