SLPP Government’s 2022 budget aims an ambitious 46% revenue
jump, with a 2.5% revenue tax on corporate top lines and notably a
25% one off tax on corporate net revenues above LKR 2bn on FY
2020/21 year. While taxes with retrospective effects are hardly equity
positive, we do see the need for higher corporate taxes given the
shrinking tax net and personal taxes. We would have been
encouraged to see proposals spelling out a clearer approach to fight
food inflation, interest rate fluctuations or earning foreign revenue.
Banks continue to be a soft target for revenue collection.
click the link to download – LSL Budget Review
