There has been strong opposition to the Sri Lankan government’s decision to abolish income taxes.
President Ranil Wickramasinghe has announced that in Sri Lanka, which is caught in an economic crisis, the income tax for individuals and companies will be reduced. Various parties are opposing this.
In this situation, Wickramasinghe justified the tax hike and said: Foreign funds have offered to provide financial assistance of 290 crore dollars (Rs. 24,021 crore in Indian value) to Sri Lanka, which is caught in economic crisis, in four years.
However, for that, the International Monetary Fund wants to increase the tax revenue from the current 8.5 percent of the country’s GDP to 14.5 percent. He said that the income tax is calculated based on that.