Sri Lanka hikes tax rates to boost government revenues
Al JazeeraThe crisis-hit country’s inflation rose to 39.1 percent in May, its statistics office said on Tuesday. Sri Lanka’s cash-strapped government has announced a taxation overhaul to boost revenue amid the country’s crippling economic crisis, hiking value added taxes and corporate income tax, and slashing the relief given to individual taxpayers. Sri Lanka’s inflation rose to 39.1 percent in May, its statistics office said – a record level, compared with the previous high of 29.8 percent recorded in April. An increase in value added tax to 12 percent from 8 percent with immediate effect is among the key tax increases announced on Tuesday, which is expected to boost government revenues by 65 billion Sri Lankan rupees. The tax cuts caused annual public revenue losses of about 800 billion rupees, the prime minister’s office said in its statement.