Proposed wealth/property tax will be introduced after thorough analysis: Siyambalapitiya

• Says it will not affect common people
• It will be a key source of additional revenue for the government in the year 2025
• IMF is extending technical assistance in this regard

The government will introduce the proposed property or wealth tax after a thorough analysis, State Finance Minister Ranjith Siyambalapitiya said.

Calling it a very progressive tax, Siyambalapitiya said the wealth or the property tax does not affect the common people.
The minister stated this while speaking to the media in Ruwanwella yesterday.

He said through this tax, the local government institutions will be strengthened and the common people will benefit from it.
The International Monetary Fund (IMF) views a property and inheritance tax that is currently in the planning will be a key source of additional revenue for the government in the year 2025.

“…property tax is something that is in the programme, but not quite yet, because it’s  something that takes a lot of time to put into place, and it is, in fact, important for the Sri Lankan authorities to make preparations for that,” IMF Senior Mission Chief for Sri Lanka Peter Breuer told a recent virtual press briefing.

He also said that the IMF is extending technical assistance in this regard.

“So, it’s important to get started with it. But, it will take some time for that to become effective. And it’s envisaged that, in 2025, property tax would be a key source of additional revenue in that year,” he added. 

According to the programme documents, Sri Lanka has assured the IMF to revamp the property tax system and introduce a wealth transfer tax by 2025.