The Earnings Payment Tax and Withholding Tax on Interest Income have been abolished from today.
Earlier, the government had decided not to charge taxes on those earning more than Rs. 100,000 a month.
But those earning more than 250,000 rupees a month are liable to pay income tax, the government says.
5% withholding tax on interest on savings accounts has been revoked from today.
In addition, the finance ministry said the VAT levy has been increased to 75 million rupees per quarter from today.
Accordingly, VAT will be stopped from businessmen who have a cash flow of less than Rs. 75 million per quarter.
In addition, economic service charges, debit to banks and financial institutions, capital taxes on share market profits, tax on earnings, debt service tax, all taxes on religious sites, and taxes on foreign workers’ remittances reliefs are being implemented from today.
The Government Information Department stated that all income earned from plantation industries will be exempted from tax.