Colombo, Jan 23 (BAN/ AD): The proposal put forth by Prime Minister Mahinda Rajapaksa to fulfill the promise made by the Government to re-create a simple, transparent and efficient tax system, received the approval of the Cabinet of ministers.
President Gotabhaya Rajapaksa had presented a special Cabinet paper at the inaugural Cabinet Meeting held after the new government came to power to initiate economic revival. It was decided that new tax amendments will be made to promote easy tax administration and introduce self-compliance for tax payments.
Cabinet has hence given go ahead to amend the Internal Revenue Act No. 24 of 2017 and to present the draft Inland Revenue (Amendment) Bill to Parliament for approval.
Under the new amendments to the Inland Revenue Act, several tax concessions including the exemption of Withholding Tax from accounts up to Rs. 250,000 and increase the Pay-As-You-Earn or PAYE tax income limit from Rs. 100,000 to Rs. 250,000 were implemented with effect from 1st January 2020.