Sri Lanka's Ministry of Finance has announced the Cabinet's approval of an adjustment to the personal income tax structure. This includes increasing the tax bands from LKR 500,000 to LKR 720,000, while maintaining the marginal band rates. The annual tax-free threshold is also maintained at LKR 1.2 million. As a result, the brackets/rates will be as follows to the extent exceeding the tax-free threshold:
- first LKR 720,000 - 6%
- next LKR 720,000 - 12%
- next LKR 720,000 - 18%
- next LKR 720,000 - …