In a statement issued on November 1, Tennakoon said the tax changes had affected several areas, including food, education, healthcare, transport and online businesses. He claimed that the tax revisions had contributed to higher inflation, restrictions on financial transactions, increased poverty and a decline in investment, while also discouraging foreign direct investment. He further said small and medium-sized enterprises had come under greater pressure from the tax changes compared to larger businesses. The 12 tax revisions identified by Tennakoon are: Excise duty increases (January 2025): An approximately 6% increase in excise duties on liquor, cigarettes, tobacco, sweetened beverages and motor vehicles. Electric vehicle taxes (February 2025): A doubling of the tax rates applicable to electric vehicles. Vehicle import taxes (February 2025): The removal of existing customs duty exemptions and the introduction of a 20% import duty, alongside a 50% surcharge, bringing the effective rate to 30%. Withholding tax on bank interest (April 2025): An increase in the withholding tax rate on bank deposit interest from 5% to 10%, with relief available to eligible low-income earners through self-declarations. Corporate income tax (April 2025): An increase in the corporate tax rate from 40% to 45% for companies engaged in liquor, tobacco, betting and gambling businesses. Tax on service exports (April 2025): The introduction of income tax of up to 15% on service exports and income from foreign sources that were previously exempt. Customs import duties (April 2026): A revision of the existing duty structure, introducing new rates of 0%, 10%, 20% and 30%, with the highest rate applying to selected imports. SSCL on vehicle imports (May 2026): The application of the 2.5% Social Security Contribution Levy (SSCL) to vehicle imports. Additional vehicle import surcharge (May 2026): The introduction of a 50% surcharge on the existing 30% customs duty, bringing the effective rate to 45%. The measure has been extended until December 31, 2026, according to Tennakoon. Capital gains tax (June 2026): An increase from 10% to 15% for individuals and partnerships, and from 10% to 30% for trusts, mutual funds and non-governmental organisations. Withholding tax on professional services (June 2026): A 5% withholding tax on monthly income exceeding Rs. 100,000 earned by professionals, including photographers, artists, IT specialists and social media professionals. VAT on digital services (July 2026): The introduction of an 18% VAT on digital services supplied by foreign companies not registered in Sri Lanka, although its practical implementation has not yet been fully completed, Tennakoon said. Tennakoon called on the Government to consider targeted tax revisions in the upcoming Budget, particularly in sectors affecting public nutrition, healthcare, education and industry. He said priority should be given to food, medicines and medical equipment, school supplies, and raw materials used in the fisheries and agriculture sectors. The tax rates and effective dates outlined by Tennakoon have not been independently verified. (Newswire) The post Rajith Keerthi Tennakoon lists 12 tax revisions under new Government appeared first on Newswire.
