President Anura Kumara Dissanayake announced in Parliament that the PAYE tax exemption limit has been increased to Rs. 150,000 from the previous Rs. 100,000.
This adjustment follows discussions with the International Monetary Fund (IMF) during its third review.
“We successfully negotiated to raise the monthly tax threshold from Rs. 100,000 to Rs. 150,000,” the President stated.
He explained that the decision addresses concerns raised by professionals regarding the burdens of the existing PAYE tax system.
