Paying tax for vehicles not needed if annual income less than Rs. 500,000: IRD Chief

11 July 2018 08:35 am Views - {{hitsCtrl.values.hits}} 25 Bookmark

A A A

Taxpayers whose annual income is less than Rs. 500,000 per year, need not pay additional taxes for owning a vehicle, Inland Revenue Department (IRD) Commissioner Ivan Dissanayake said.

He told the Daily Mirror that some media institutions had misinterpreted a speech he had made recently.

He said people who live a luxury life and make seven or eight trips abroad a year should open a tax file with the IRD.

Persons who open tax files and work in the private sector with an annual income that exceed Rs. 500,000 will have their taxes automatically deducted from them by the Department. Upon deduction, no other taxes will be charged from them even if they own vehicles.

“However, there are businessmen who own multiple vehicles who evade paying taxes and there are also those who drive luxury and super luxury vehicles. Their incomes often exceed Rs. 500,000. So, they should open a tax file and pay their taxes,” Mr Dissanayake said.

“Several airlines had informed the IRD about air tickets being sold at higher rates as most of the people travel overseas during the school holidays,” Commissioner Dissanayake said.

“Therefore, I requested those people to open tax files considering their annual income,” he said. (Chaturanga Samarawickrama)