Sri Lanka raises withholding tax on interest income to 10%, starting April 2025, to boost revenue and curb evasion.

Sri Lanka's government plans to raise the withholding tax rate on interest income from 5% to 10% starting April 1, 2025, to combat tax evasion and boost revenue by an estimated Rs. 90 billion. This change is seen as a prepayment of taxes and not an additional levy. The move aims to enhance tax compliance and educate the public on the role of taxes in funding public services.

3 months ago
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