14 September 2024 12:25 am Views - 244
By Nuzla Rizkiya
The government announced yesterday (13) a series of tax relief measures for personal income taxpayers, set to come into effect from April 2025.
The Cabinet of Ministers has approved a proposal to adjust the personal income tax structure, that will require amendments to the Inland Revenue Act prior to enforcement.
According to the new structure, the individuals with a monthly income of Rs.150,000 will receive a 14 percent tax reduction. The salaries of Rs.200,000 will see a 20 percent reduction, while the incomes of Rs.300,000 and Rs.400,000 will receive tax reductions of 25 percent and 23 percent, respectively. For the incomes of Rs.500,000, the government has offered a 15 percent tax reduction, while a monthly income of Rs.750,000 will benefit from an 8 percent reduction.
Lastly, a 6 percent tax reduction will apply to the incomes of Rs.1,000,000.
The government further announced that the tax-free threshold will remain unchanged at Rs.1.2 million per annum, while the tax bands will increase from Rs.500,000 to Rs.720,000.
The marginal tax rate for each band remains at 6 percent, with the tax rate for high-level incomes staying at 36 percent.
The President’s Media Division stated that the expansion of tax bands was made possible through the government’s prudent management and effective fiscal consolidation efforts.