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Tuesday, 24 November 2015 01:30 - - {{hitsCtrl.values.hits}}
The 2016 Budget proposals have ensured Sri Lanka is by far the best in terms of income taxation.
The impressive ranking of Sri Lanka was revealed yesterday during the Ernst & Young post Budget Forum.
It was highlighted by E&Y that as per the standard rate Sri Lanka’s 15% puts it as third best or equaling with Germany and only behind Ireland’s 12.5%. However Chief Guest Finance Minister Ravi Karunanayake qualified it saying effective taxation in Ireland was over 16% hence Sri Lanka’s 15% rate is world’s best. Apart from that a higher rate of 30% applies to selected industries in 2016. The 15% rate applies to 70% of the tax payers, according to the Finance Ministry.
In personal taxation of 15%, Sri Lanka remained lowest among selected countries compiled by E&Y.
“In a personal tax view point Sri Lanka is the most attractive for people to work in terms of tax. In the region we are paying the lowest tax rate,” noted Head of Tax Services Duminda Hulangamuwa.
Ernst & Young Senior Partner Asite Talwatte described 2016 Budget as “very progressive and developmental” with focus on deregulation, export promotion and strengthening financial infrastructure.
