All tax reductions to come into effect from 1st Jan

All tax reductions provided by the new government will come into effect from tomorrow, Minister Bandula Gunawardane said.

Gunawardane was speaking at a press conference held at the Government Information Department today(31).

Accordingly, the below tax reductions will come into effect from 1st of January 2020.

  • Removal of Capital Gains Tax imposed on the Colombo Stock Exchange, Withholding Tax on interests, Debit Tax imposed on banks and other financial institutions, Debt Services Tax and Pay As You Earn Tax(PAYE), Economic Service Charge, Income Tax on foreign currency earnings.
  • The reduction of the telecommunications levy to 25%.
  • The reduction of the Construction Industry Income Tax from 28% to 14%.
  • Reduction on taxes on religious places and tax reduction on Plantation Sector revenue.