Cabinet approval to amend the Inland Revenue act

Colombo (News 1st): Prime Minister and Minister of Finance, Economy and Policy Development, Mahinda Rajapaksa's proposal to amend the existing Inland Revenue act, has been granted cabinet approval. The draft of the amended Inland Revenue act was submitted by Prime Minister Mahinda Rajapaksa to parliament last week. Under the proposed amendments, with effect 1st January 2020, interest income up to Rs.250,000 will be exempt from withholding tax. With effect 1st April 2020, interest income will no longer be applicable to withholding tax and will be included in taxable income. With effect 1st January 2020, the monthly threshold applicable for PAYE has been increased to Rs.250,000, while the next Rs.250,000 slab will be taxed at 6%, the next slab at 12%, and the next slab at 18%. With effect April 2020, corporate income tax rates have been amended as follows. Companies operating in the export, tourism, education, health, construction, and agriculture sectors, will be charged a tax rate of 14%. Companies in the manufacturing sector will be taxed at 18%. Institutions operating in the alcohol, tobacco, betting and gambling sectors will be taxed at 28%. Traders, banks and the financial and insurance sectors will be charged at 24%