Legal framework for proposed wealth and property tax yet to be finalised

The government is yet to finalise the legal framework for the proposed wealth and property tax, which is set to come into effect from 2025.
“The understanding behind the wealth tax is that in countries such as Sri Lanka, wealth is accumulated by way of property. High earners are targeted through property and wealth taxes, where wealth is accumulated and it’s supposed to be taxed; however, the legal framework or basis for taxation hasn’t been finalised,” Finance Ministry Tax Policy Advisor Thanuja Perera said.
The proposed wealth and property tax is one of the structured benchmarks under the International Monetary Fund Extended Fund Facility programme.