Sri Lanka to forego Rs.28.4bn in next year on income tax, CESS, VAT revisions
Photo: EconomyNextAI summary · 1 min read
1 min readFrom 1 outlets- EconomyNext reports a Rs. 16 billion projected loss from the revised income-tax structure.
- The budget projects Rs. 10 billion less revenue from removing CESS and Rs. 2.98 billion less from VAT revisions.
- EconomyNext reports smaller projected losses from changes to PAL and abolition of the Tourism Development Levy.
- A revision to the Special Commodity Levy is projected to raise Rs. 950 million.
EconomyNext reports that Sri Lanka’s 2027 budget document forecasts a net revenue reduction of Rs. 28.4 billion next year from revisions to income tax, the Port and Airports Development Levy (PAL) and Value Added Tax (VAT), along with the removal of CESS.
EconomyNext reports that the revised income-tax structure is expected to reduce revenue by Rs. 16 billion, as the tax-free income threshold rises. Removing CESS is projected to cost Rs. 10 billion, while VAT revisions are expected to reduce collections by Rs. 2.98 billion.
EconomyNext reports projected losses of Rs. 350 million from PAL revisions and Rs. 40 million from abolishing the Tourism Development Levy. It reports that changes to the Special Commodity Levy are expected to add Rs. 950 million in revenue. The report does not give further details about the measures or their implementation.
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