President hints at wealth tax

President Ranil Wickremesinghe has said that Sri Lanka will have to impose higher taxes, including on wealth, at an economic forum organized by the Advocata Institute think tank.

Although he said nothing about when these measures will be introduced, observers expect an announcement in the interim budget to be presented shortly.Death duties and inheritance taxes were abolished in the late seventies.

Although equity is a first principle of taxation, Sri Lanka has long ignored this with public service emoluments being tax exempt and several state agencies picking up their employees tax liabilities.Notoriously income tax evasion is rampant in the country despite generous exemption limits.

The president said the gap between the rich and poor has been widening in the last 10 years and has resulted in ore vulnerable poor in the country.

“This also means we’ll have to have higher taxation, even taxation on wealth,” he said.