Tax relief will benefit people, says Finance Ministry

By Dayaseeli Liyanage

The Ministry of Finance said that the income of the people would rise and they would receive economic concessions as a result of the reduction of VAT on telecommunication 
and PAYE.

Finance Ministry Director (Media) Mohamed Ali Hassan said that telephone users would be highly benefited.

He said that mobile telephone use in the country was about 120% and the tax levied on them was expected to be reduced from 37% to 25%.

However, the Gazette has not yet been published on this.

“With the reduction of VAT from 15% to 8%, the price of non-essential commodities and services would be reduced,” he added.

He also said that the monthly income related to the PAYE had been increased up to 0.25 million resulting in its abolition.

The legal situation connected with the implementation of the relevant tax concessions would be briefed in the coming week.  

Mobile telephone use in the country was about 120% and the tax levied on them was expected to be reduced from 37% to 25%