Sri Lanka has seen many tax hikes and now according to the gazette issued on Tuesday, effective from April 1, 2022, a person with a monthly income above 100,000 Sri Lankan rupees will have to pay taxes.

The annual threshold-free income is 1,200,000 rupees down from the previous level of 3,000,000 rupees.

If a person annually earns 3 million rupees, which was tax-free earlier, the first 500,000 rupees after the 1,200,000 rupees tax-free threshold, will be charged 6 percent, the next 500,000 at 12 percent, next 500,000 at 18 percent, and the remaining 300,000 at 24 percent.

The corporate tax has been increased to 30 percent from 24 percent.

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