SL to introduce property tax and gift and inheritance tax

Sri Lanka is expected to introduce a property tax and a gift and inheritance tax by the beginning of 2025, under the International Monetary Fund programme.

“In particular, we will introduce a nationwide real property tax and adjust the system of transfers between the central and provincial governments.

We will also introduce a gift and inheritance tax with a tax-free allowance and minimal exemptions,” the IMF programme documents made public this week said.

The preparatory work for these tax reforms will commence by mid-2023, supported by IMF technical assistance.
Sri Lanka is expected to achieve a primary fiscal surplus of 2.3 percent of GDP by 2025.

Also, Sri Lanka needs to raise the tax-to-GDP ratio to at least 14 percent by 2026 by implementing a sequenced package of tax measures.