IMF pushes for new tax on SL homeowners, vacant properties by 2025

15 June 2024 11:02 am Views - {{hitsCtrl.values.hits}} 58 Bookmark

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Colombo, June 15 (Daily Mirror) - The International Monetary Fund (IMF), in its latest report on Sri Lanka has proposed an imputed rental income tax from owner-occupied and vacant residential property to be introduced by April 1, 2025, with an exemption threshold and a graduated tax rate schedule.

The report says the introduction of such a tax is critical to sustain revenue mobilization efforts as a substitute for the property tax which was initially planned for 2025 but faced institutional impediments.

It says establishing a database on property valuation that includes information such as assessed values, latest assessment date, and property type in all municipal councils by August 2024.

“Fully operationalizing a nationwide digital Sales Price and Rents Register (SPRR) by end-March 2025, accessible by the Inland Revenue Department (IRD), the valuation department, the land registry, and the public (proposed SB). This digital SPRR would be the key resource for assessing property values and the imputed rental income tax,” it says.

It also stated that important vulnerabilities and uncertainties remain, including with respect to the ongoing debt restructuring and the upcoming elections, and its directors, against this backdrop, called on the authorities to continue strengthening macroeconomic policies to restore economic stability and debt sustainability and to sustain the reform momentum to promote long-term inclusive growth.

The IMF Executive Board completed the 2024 Article IV Consultation and Second Review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with immediate access to SDR 254 million (about US $336 million) to support its economic policies and reforms.

The Asset Recovery Bill, after much-needed public consultation, should be enacted by November 2024.

Comments - 58

Avanka Perera Saturday, 15 June 2024 11:38 AM

Why do the people pay for the inefficiency and dishonesty of politicians, the present leader is supporting and protecting all robberies. is it fair for the politicians who have ruined the country to have a luxurious life while the masses pay for the robbed wealth, it is justice and do we need such leaders

8 305

Sivakumar , Jaffna Hindu Tamil Sunday, 16 June 2024 01:10 AM

Only now the people would start to appreciate the difference between borrowing from fellow Asian countries like China or Japan and borrowing from cold blooded and heartless Western institutions like the IMF. The unspoken purpose of the IMF and the World Bank is to financially control the non- white countries, leading to political control, and to make as much financial gain as possible in terms of interests. While the Christian Sri Lankans would continue their inherent loyal support to the West , the simple obvious truth is Sri Lanka attempting to enforce the unrealistic demands of the IMF on the people, is going to create poverty and starvation that would quickly trigger a complete social collapse of the country.

157 100

Sanjeewa A. Sunday, 16 June 2024 01:19 AM

Did the politicians come and sit on their seats by themselves? When electing presidents, did you give importance to economy or religious dominance? So, please note that you suffer because of your own mistakes.

4 158

Wera Monday, 17 June 2024 11:10 AM

The current leader had a mountain of debt to settle and a country to run. People never understood the costs of borrowing when they repeatedly voted against their own interests for the Rajapakshe family. Stop crying for the poor people they asked for it. Now they don't want to admit their own stupidity and blame the leader who took up the challenge and is making headway. As for the IMF and its proposals they are just proposals. They don't have to be accepted unless there is no other way to service the debt.

4 7

Revamp The Current System Saturday, 15 June 2024 11:59 AM

All these taxes imposed on the average citizen is due to wastage and malpractices of previous and current governments. The so called politicians are not affected by the increase of taxes but they created most of the mess over the years. Why continue voting for these same old mostly corrupt so called politicians? Might as well try a newer party and hopefully with younger professionals in them as there is nothing to loose. If these current fellas are voted back, the same old misery and challenges will continue for the next 5 years.

2 165

Johan Saturday, 15 June 2024 12:13 PM

Nothing to worry we will not support RW In next elections.He will pickpocket us under the guise of economy recovering hero

10 170

Jagath Leanage Saturday, 15 June 2024 01:36 PM

Will they introduce a tax for living ( ඇග බද්ද ) ?

7 100

Joshua Saturday, 15 June 2024 01:58 PM

Ranil with a coat and tie thinks he is Joe Biden. Get lost. Why should we pay tax to a country governed by rogues, and stooges of rogues. How can one pay tax for deemed rent. Is this fellow off his head??

16 194

Mathusan K Saturday, 15 June 2024 01:59 PM

All investors in Srilanka face tax and expenditure, but no income. Good luck with it. The Rajapakshe’s have ruined the country beyond recovery.

2 166

Shakeel Saturday, 15 June 2024 02:03 PM

IMF Terms are not clear. They are try to run the government. These terms are not transparent to the general public. Government handling this matter might be a setback to regaining power. The Elite and those who ransacked the country are not being made liable. The disparity gap is widening.

158 118

BanduXX Saturday, 15 June 2024 02:37 PM

Hope all parties will accept this Asset Recovery Bill and hope it addresses the problem fully unlike so many Bills where there were loopholes for crooks to wriggle through.

119 5

BanduXX Saturday, 15 June 2024 10:50 PM

The Legal Draftsman has been instructed to prepare a bill based on the recommendations of the expert committee appointed to study the policy, legal framework and procedure required to recover the proceeds earned from crime. This is the Asset Recovery Bill.

17 2

Sumith Saturday, 15 June 2024 02:47 PM

Property taxes will increase rents and all expenses. Cost of Living will skyrocket. Businesses will increase prices but never reduce when rupee appreciates - Price of Happy Cow Cheese and Accuchek Diabetic Strips have not been reduced eventhough rupee has gained by nearly 25 % against dollar. Thanks to all politicians who ruled the country since 1956 and the Key Decision makers since 2006 for this hopeless and helpless situation resulting in people selling their properties and liquidating their fixed deposits to survive and sustain themselves.

0 135

BnW Saturday, 15 June 2024 03:30 PM

Why do already tax paying citizens pay further tax on their first home, where they live? It's understandable to tax on additional properties. What action government taken to cut expenditure of themselves, where politicians now ask for duty free vehicle permits? There are people travel overseas for luxury holidays without paying taxes. There are people buying properties in other countries without paying taxes. Is this all government knows how to increase revenue? Whatever little vote base RW had, with this he nailed the last one on his political coffin.

0 94

Mahila Sunday, 16 June 2024 06:21 AM

So this Tax is on additional properties of any person, Not RENTED, USED but kept VACANT!? NOT Tax on HOMES where they Reside Permanently!!?? Exactly what you claim should be done!! WHY PROTEST!!?

1 10

Cherath Sunday, 16 June 2024 10:21 AM

Read carefully. It says, '...rental income tax from owner-occupied and vacant residential property' NOT additional properties. So every property occupies or unoccupied by owner will be liable for this tax.

0 1

Pusa Saturday, 15 June 2024 03:33 PM

This is called a “Roof Tax” !

0 19

Tissa Fernando Saturday, 15 June 2024 03:52 PM

IMF will ensure that Sri Lanka becomes a totally uncompetitive country for business and living. With so much taxes , how could people afford living their lives.This leads to more corruption and undeclared income.

0 54

sam Saturday, 15 June 2024 04:27 PM

Money required for the 225 to survive

0 37

Lanka Saturday, 15 June 2024 05:10 PM

IMF ie going to run our country soon...it is checking every rules jn your pocket and next it will repossess your house as well in the name of loan and support..

0 29

Ratnayaka Saturday, 15 June 2024 05:14 PM

All will come after the election for sure! The endless corruption end up in taxing the public! Get the corrupted out of politics for the betterment of the nation! Central bank robbery and others are being invested abroad and latest bring Visa taxing on tourists while the former minister of health is in remand, while waiting for sentence to ask for presidential pardon!

0 84

DHA Saturday, 15 June 2024 05:17 PM

Dear IMF Majority of the loans you'll passed went into politicians pockets pls tax them. Citizens are already loaded with taxes

0 51

Yohan Saturday, 15 June 2024 05:29 PM

Why these fools cannot reduce the government sector employees ans look at the number of individuals getting free salary in tri forces. Instead of working out a plan to reduce that these thieves and imf thieves are trying to rob from everyone. Imf is not even forcing the rogue government to reduce unwanted expenses like fre fuel for ranils advisors and mps. Instead trying to rob from people. Ranil will get defeated just like like how he got defeated at last general election. Noone will vote for these thieves.

33 437

sss Saturday, 15 June 2024 06:35 PM

So from the latest IMF check they said the corruption has not been addresses and they do not care. Without eradicating corruption all this money is like putting water in to a leaking bucket. So primarily IMF is putting poor SL people (not the thieving ruling classes and the professionals) from pot to fire with more debt being piled on them

48 479

Sambo Saturday, 15 June 2024 07:29 PM

Why don't the IMF also suggest to recover solen money and assets of the public be removed before a given time period.

1 44

Joshua Sunday, 16 June 2024 06:40 AM

Imf has no backbone for that....hence supports corruption and wastage. Very clear

0 2

PENSIONLESS PRIVATE SECTOR RETIREE PAYING INCOME TAX SINCE 1975 Saturday, 15 June 2024 07:48 PM

Those who proposed this tax are LUNARTICS.

0 61

Nimal Saturday, 15 June 2024 07:57 PM

There isn't a proper system to charge monthly payments from UDA. As such payments made go to pockets of individuals. First rectify that before increasing tax

0 45

Not worthy Saturday, 15 June 2024 08:31 PM

70 years of excellent government has left the banana Republic with peanuts in coffers. Red, Green, Blue, Yellow any color that came into power make themselves wealthy, healthy and Gay! When nothing to take... begging bowl come out and virtually everyone country in the world becomes our best friend. Loan masters like IMF comes for bailout and puts all out conditions to squeeze out the last bit of air in the living dead citizens of banana Republic.... But the best jokes is still reserved....... the same lot gets elected again by the voters after few carrots and beetroots....and some spicy racism masala.... Thank you IMF, this country deserves every bit of that squeeze.

0 160

Navi Saturday, 15 June 2024 08:34 PM

Why from home owner occupied ? Homeowner occupied pays rates. A tax can be collected from Homeowner receiving rentals.

2 53

Raj Gonsalkorale Saturday, 15 June 2024 09:27 PM

An imputed tax on potential rental of residential properties is a proposal by imbeciles and has to be opposed by everyone. Whatever good the IMF may have done will dissipate with this ridiculous proposal.

1 69

Ranjith Saturday, 15 June 2024 10:55 PM

If the country is on economic recovery path and not bankrupt why is that new taxes are being introduced and why is the country continuing borrowing still the same old crooks are in power and the so called common presidential candidate is supported same old parliamentarians who brought this country to bankruptcy, can we vote for Ranil?

1 49

Goliath Saturday, 15 June 2024 10:58 PM

IMF will push for Taxing the public. President Ranil Wickremesinghe will say yes to the Taxation and then we will all sit in our social circles in Colombo and say Ranil is doing a good job. What about judging him in revenue generation, employment generation, measure him on FDIs, meeting development goals etc. It’s time to call him on his BS.

0 82

Ranjith Saturday, 15 June 2024 11:00 PM

Srilankan's shouldn't make the same mistake which they did in 2019 all Srilankan's should think differently and send these old crooks home and vote in a new President and fresh set of new parliament members as much as possible, while returning the goods ones

0 75

Shera Sunday, 16 June 2024 01:04 AM

Now everyone has to pay taxes with every breath for the sins of the few who put the country in this mess.

0 3

Shera Sunday, 16 June 2024 01:05 AM

Now everyone has to pay taxes with every breath for the sins of the few who put the country in this mess.

0 0

FredSnR Sunday, 16 June 2024 02:49 AM

Before anything you must have an election.Then you must stop the WASTE and CORRUPTION that is everywhere.Don't need an IMF for that.When you do that you may find your current revenue measures are enough.If not there are plenty of ways in which revenue can be raised but allow the NEW govt to do that.Iam sure many of the politicians have made plenty of money to last a lifetime.Those who have not will still have their pension and duty free car

0 3

ding dong Sunday, 16 June 2024 05:36 AM

IMF proves that Sri lanka is inefficient

0 1

Ignatius Rasiah Sunday, 16 June 2024 07:09 AM

This happens when the Country is broke. Happenning in the state of VICTORIA in Australia. Tax on Land has increased. Those who have rental properties, Buying 2nd Homes have increased. If your country is broke - Then you have to pay. All Governments are to blame.

0 0

FredSnR Sunday, 16 June 2024 11:21 AM

Should not compare SL which is dead broke where majority are poor living on poverty line with Victoria which is a state in Australia A visit in Sri Lankan air lines will show you that. And they Have Elections so if politicians are bad they are quickly voted out .There is Accountability

0 1

Sena Sunday, 16 June 2024 07:56 AM

The IMF is not responsible for our mistakes. It's our people that keep voting for these corrupt politicians over and over again. It is a never-ending cycle. However, we have an opportunity to do something about it. We must ALL unite and get rid of them once and for all in the upcoming presidential/parliamentary elections. Let's change the scenery!

0 35

Sambo Sunday, 16 June 2024 08:07 AM

I also suggest that the IMF brings a condition that all the politicians who has stolen monies should be prosecuted before February 2025. This will solve most of the problems.

0 2

Crazy Sunday, 16 June 2024 08:07 AM

This is bullshit. Having to pay tax on the property that you're currently living based on the income you'll expect to earn if it is rented is ridiculous and senseless. First, government should collect taxes that have not been paid by businesses. Downsize gvt sector which contribute little. Ranil has gone mad and he thinks it is only to do with the general public in recovering the economy.

0 6

CitizenP Sunday, 16 June 2024 08:26 AM

It looks like we are going back to1815 era where foreign power controlled us.

0 1

Bandara Gamaga Sunday, 16 June 2024 08:33 AM

Get the stolen money from corrupt politicians. Billions of USD is deposited in Dubai banks. That should cover tax shortcomings. Sadly Ranil, won't do ot he depends on the crooks for power.

0 8

Wera Monday, 17 June 2024 11:17 AM

Do you think the Dubai banks or the banks in San Moreno, the Seychelles, Uganda are waiting with their arms out stretched to return money of depositors because Sri Lanka alleges that it is stolen. It takes years and years of litigation by expert investigators and long court cases to recover this money. If the current leader spent all his time and the countries merge resources going after the stolen money then how is Sir Lanka going to survive. Where are your priorities. Do you want the starve and get about in a bullock cart?

1 2

Amjad Sunday, 16 June 2024 08:40 AM

Paying tax for renting a house - people live on rent because they are unable to afford a home. - This kind crucial hypocritical suggestion usually comes from Illuminati elite members - Just give pain - SRI LANKA LONG WAY TO UNDERSTANDING

0 7

T Selwyn Sunday, 16 June 2024 08:52 AM

IMF should get involved in write off process of loans given to political goons not the People in Power.

0 2

Monesh Niranjan Jude Antonypillai Sunday, 16 June 2024 09:28 AM

Trying to grab money from hard earned savings. What about ministers houses? They have private properties and staying govt luxury houses. We have to pay all their rents and bills. Best idea is NPP to power.

0 12

Hon. Sarneris Sunday, 16 June 2024 09:28 AM

Looks like the have bribed the IMF to turn a blind eye about the political mega thieves who bankrupted Lanka. Why not tax them or bring back the stolen money lying in Singapore and Dubai?

0 15

A reader Sunday, 16 June 2024 10:39 AM

The law-abiding citizens of this country are already burdened beyond tolerance. If the IMF is so worried about the low state revenue level, it should impose the following 3 conditions on the government, which would lead to a drastic increase in state revenue: 1.Reduce all government expenses by at least 50% 2.Confiscate personal wealth and properties of government servants convicted of wasting or misappropriating state funds. 3.Ban government servants from participating in strikes and withholding their services. (any grievances to be handled by the relevant authority's internal mechanism) Any future government will have to implement the above 3 conditions if this country is to prosper again. The other option would be for 98% of the current population to migrate, leaving more politicians than voters in the country.

0 1

Buddhist Sunday, 16 June 2024 05:14 PM

This tax is being introduced as Ranil has been giving money to his MPs that was not in the original proposal to the IMF. Further, Ranil is pumping money in various ways to MPs to buy them into his camp to win the Presidential election. As a result, an additional burden is being put on the nation's taxpayers. Its time the voters open their eyes. Imagine what other taxes will be implemented by IMF when they find out Ranil is paying money to MPs whose homes were destroyed rather than them claiming from their insurance and also tax-free vehicle permits!

0 0

Aki Sunday, 16 June 2024 05:23 PM

No wonder even if they imposed tax on our body parts.this so ridiculous.nation moving to somewhere else.

0 2

Volker Metzger Sunday, 16 June 2024 08:49 PM

Almost all comments describe the still chaotic economic situation caused by governments that rob and cheat people perfectly accurately!!! The miserable situation of most people who struggle to survive on a daily basis is visible in both the big cities and the villages!!! There is a blatant injustice and according to the IMF report, the main causes of corruption and tax injustice have not been eliminated!!! The poor pay for the wealth (!) of the rich!!! Now the tax screw is to be turned again!!! But if you look at the presidential candidates mentioned so far, AKD, Premadasa and Wickremesinghe, you lose courage and the belief that they will reach the safe shore!!! The only politician who can be trusted to consistently fight the problems from the root and to enforce his government's claim to power is the independent presidential candidate Sarath Fonseka, who has already shown his brilliance and his "country and nation first" attitude in a magnificent way!!! He knows how to win victories

1 6

VJ Monday, 17 June 2024 07:36 AM

To increase government revenue, first look at ways and means of reducing expenditure, reducing waste. Taxing the people to fund the incompetence of the administration is the approach taken by the present administration. Living in your own property, the rental value of the property is now considered an income for the owner and becomes taxable. Will this be taken into account of taxable income threshold? Or a separate tax outside the income tax threshold?

1 1

Seeya Monday, 17 June 2024 09:15 AM

The outcome will be that the law abiding citizens will pay this tax whereas the people with means will forego this the same way they evade tax. People will be paying tax on their income as well as on assets just to help these DESHAYA PALUwas to rule the roost and dance away.

0 0

Mohan Monday, 17 June 2024 12:22 PM

Remember the Tax Identification Number saga. First the government said everybody had to have one and it changed to particular categories and the issue fizzled out. This will likewise will turn out to be a storm in a tea cup with only particular categories a few being affected. Wait and the politicians will come to their senses.

0 0

scranjitha Monday, 17 June 2024 08:51 PM

The news items refers to "with an exemption threshold and a graduated tax rate schedule." What it means - I believe is that The Rental Value stated in the Assessment Tax Notices will play part to determination of the Tax Liability. And that too on a 'graduated Tax rate Schedule". To my understanding the greater the Assessment Value of the house by the Local Authority will attract higher Taxes. Similar to the Income Tax Threshold of Rs.100,000 pm and 1.2Mn per year. Probalbly accordingly the Commercial area the owner would have to pay higher taxes while in the Village and urban areas, it would be Lower. Let's wait and see. Without understanding basics, do not jump the gun !!

0 0

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