President Anura Kumara Dissanayake has announced that the government plans to provide further relief on Pay-As-You-Earn (PAYE) tax in the upcoming 2027 Budget.
Addressing the National Trade Union Conference in Colombo on Saturday (7), the President said the government had already increased the monthly tax-free income threshold from Rs. 100,000 to Rs. 150,000.
He said further relief would be introduced through the upcoming Budget to reduce the tax burden on employees.
The President highlighted the earlier revision of the PAYE tax structure as part of the government’s efforts to ease the financial burden on working people.
The tax-free threshold was increased to Rs. 150,000 per month from April 2025, following discussions with the International Monetary Fund (IMF).
However, the President did not specify the proposed new threshold or the extent of the additional tax relief.
The announcement comes ahead of the presentation of the 2027 Budget, scheduled for November 12.
The government had previously indicated that further PAYE tax relief was under consideration, particularly for professionals affected by higher income tax deductions. (Newswire)