Property tax will not burden lower-income population, State Minister assures
June 22, 2024 03:10 pm
State Minister of Finance Ranjith Siyambalapitiya emphasizes that the proposed imputed rental income tax will only be implemented after the first quarter of 2025.
Speaking to the media, the state minister said that 90% of the country’s population will benefit through this tax.
“This is not a tax that will be implemented this year. It is expected to be introduced after the first quarter of 2025. The wealthiest segment of our society, which is about 10 percent [of the population], will be subjected to this tax. 90 percent of the population will benefit through this tax”, Siyambalapitiya claimed.
He further explained that this tax will allow a reduction in the indirect taxes that the majority of the public currently pay.
“Even within the wealthiest 10%, their primary asset will not be taxed. Only a small percentage of their other assets will contribute to state income. We will ensure that the tax is affordable for them and beneficial in the long run,” he noted.
“This is not an indirect tax, and it will not be passed on to the lower-income class. The responsibility for this tax lies solely with the payer. Therefore, it is incorrect to suggest that it will eventually burden the lower-income population,” Siyambalapitiya emphasized.
