How the tax increases !

The government has proposed to increase the value added tax from 8 percent to 12 percent.

Announcing the proposed tax revisions to be introduced soon and in the near future, the Prime Minister's Office said that it intends to increase the telecommunication tax from 11.25 per cent to 15 per cent tomorrow.

It is proposed to reduce the personal income tax relief from Rupees. 3 million to Rupees. 1.8 million as tax proposals to be implemented from October 1.

It is proposed to reduce the tax bracket on taxable income from Rupees. 3 million to Rupees. 1.2 million and to impose a tax rate of 4% to 32% on each tax bracket and to make retention tax on employment income mandatory.

It is also proposed to make retention tax compulsory, treat retention tax on interest and dividends as final payments and reintroduce the concession on interest income of Rupees. 1.5 million for senior citizens.

The series of proposals also includes the imposition of a withholding tax on service payments exceeding Rupees. 100,000 per month to individuals such as professionals.

Increase the corporate income tax rate from 24% to 30% and increase the concessional tax rate from 14% to 15%, reduce the registration limit for value added tax from Rs.300 million per year to Rs.120 million per year, Residential condominium It is also proposed to remove the collection tax exemption provided for flats.

Increase the annual tax on gambling operations from Rupees. 200 million to Rupees. 500 million and the annual tax on betting businesses from Rupees. 4 million to Rupees. 1 million to Rupees. 1 million and from Rupees. 50,000 to Rupees. 75,000 when operating without live streaming facilities.

The Prime Minister's Office has also announced the course of action to be implemented from April 1, 2023, stating that dividends paid to a resident by a resident company will be subject to income tax.