Government to implement new property tax in 2025

The Government is set to implement a new property tax starting from 2025, State Minister of Finance Ranjith Siyambalapitiya said.

According to the State Minister, this decision comes as a result of recommendations put forth by the International Monetary Fund (IMF).

"The new tax will primarily target individuals possessing substantial property assets. These individuals will be required to pay a tax based on the value of their properties," State Minister underscored.

"The motive behind this move is to address income inequality and finance development projects across the nation," he added.

It is worth noting that the IMF, a key international financial organization, provided recommendations that pushed Sri Lanka towards this decision. The introduction of this tax aligns with the global trend of countries implementing measures to address wealth inequality and ensure a more balanced economic landscape.

As the year 2025 approaches, the Government of Sri Lanka will continue to develop and refine the necessary policies and procedures to ensure a smooth implementation of the new property tax. This comprehensive planning process is critical to avoid any potential hurdles and ensure the successful execution of the tax reform.