New Inland Revenue Act to come into effect from today

According to the Ministry of Finance a new Inland Revenue Act is scheduled to come into effect today (1st April). Following the new Inland Revenue Act, a number of tax amendments will take place with effect from tomorrow (2nd April).

The Payee Tax is one of the key areas that would be amended following these tax amendments. Accordingly, the employee tax-free status will be revised from annual salary of Rs 750,000 to annual salary of Rs 1.2 Million.

Ivan Dissanayake, the Commissioner General of the Inland Revenue Department says the interest of savings deposits will be increased from 2.5% to 5% as a result of the new amendments. The Sri Lankans who are serving overseas will benefit with additional 5% interest on their funds deposited in local banks.

However, according to the new act, there will be no tax imposed on the money sent by expatriates who are living in Sri Lanka to their families and relatives.

(News 1st)