Black Protest Week: Professionals against unjust tax

COLOMBO (News 1st) - Wednesday the 25th of January went down in history as the day in which a majority of the country's public and private sector employees were met with the highest income tax ever-imposed on the monthly salary, and allowances.

Some of those working in the public and private sector and got taxes shared horror on social media platforms, noting that in addition to the existing deductions for loans, the new tax had left them with a very low take-home salary.

The government's controversial new tax law, the Inland Revenue (Amendment) Act, was passed in Parliament last year.

The new tax regime imposes an extraordinary maximum 36% tax bracket on monthly income, with the lowest bracket starting at 6% for those earning over Rs. 100,000/- per month.

To protest against the unjust tax policy, a Black Protest Week was launched by the Professionals' Trade Union Alliance, and it will end on Friday (27).

Doctors in the public service, university teachers, bank employees, engineers and professionals belonging to 15 organizations that form the Professionals' Trade Union Alliance launched a campaign against the unjust tax regime.

The Professionals' Trade Union Alliance warned that if this tax regime continues, the country would experience a mass exodus of its professionals who would seek beneficial employment opportunities elsewhere.

Effective from 1st January 2023, the progressive personal income tax rates would
be 6%, 12%, 18%, 24%, 30% and 36%.

The new tax regime will impose an extraordinary maximum 36% tax bracket on monthly income, with the lowest bracket starting at 6% for those earning over Rs. 100,000/- per month.

Monthly income of up to Rs. 100,000/- will be free from tax. A person who earns Rs. 350,000/- a month will be subject to all six tax brackets and will have to pay a tax of Rs. 52,500/- per month.