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President to discuss changes to Personal Income Tax at the first review of IMF loan

President to discuss changes to Personal Income Tax at the first review of IMF loan

16 Mar 2023 | By Imesh Ranasinghe

  • GMOA says Prez. promised to discuss Personal Income Tax, confirms receiving in writing
  • Proposals made by trade unions to be taken up in first review which is in a ‘few’ months


The Government of Sri Lanka is to discuss the amendments to the existing Personal Income Tax (PIT) law presented by the trade unions with the International Monetary Fund (IMF) at the first review of the Extended Fund Facility (EFF) provided to the country, President Ranil Wickremesinghe has promised to the Government Medical Officers’ Association (GMOA).

Speaking in an interview with TV Derana yesterday (15), GMOA Secretary Dr. Haritha Aluthge said that the GMOA had received a letter from the Presidential Secretariat under the instructions of the President, informing that the President will present the PIT proposals by trade unions to the IMF at the first review of the EFF.

Accordingly, the President had said in the letter that Sri Lanka will get the IMF board approval for the EFF on 20 March and the first review of the programme will be held in a few months, at which the Government will discuss the proposals by the trade unions with the IMF.

Wickremesinghe has said that the Government will implement those amendments to the PIT as per the proposals presented by the trade unions after the discussion with the IMF, provided that it will not reduce the government revenue and those are within the parameters of the fiscal policy IMF wants Sri Lanka to follow.

Also, in the letter, the President has agreed to continue the discussions with the GMOA and other trade unions in the period before the first review with the IMF.

Further, the President has stated that trade unions will be given an opportunity to discuss their PIT amendments directly with the IMF.

In the letter, the President has promised on behalf of the Government to strengthen the tax administration, to increase the tax base, and thereby include all those who should pay taxes.

Dr. Aluthge said the President has also said in the letter that the Government will consider providing an allowance by 4Q of 2023 based on the progress of state revenue.

However, Dr. Aluthge said that the continuation of the trade union action on Thursday (16), will depend on the decision by the executive committee when they meet on the evening of Wednesday, where the letter by the Presidential Secretariat will be discussed with all the trade unions.




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