INSUBCONTINENT EXCLUSIVE:
Monetary Fund (IMF) supported Extended Fund Facility (EFF) programme related documents make reference to a proposed property tax is to be
the remedial measures to recover from the crisis have entailed a focused effort to improve the revenue of the government
reforms focused on progressive corporate and personal income tax measures
In 2024, revenue enhancement is supported by Value Added Tax (VAT) reforms, including elimination of most exemptions and rate adjustments
Thus far, the revenue targets for 2023 have been largely met and target for 2024 is on track to reach the required level of 13.5% of GDP by
Finance Ministry explained that the main revenue measure expected to help achieve the 2025 target is a wealth tax that is focused on
clearly presented in the public domain
The envisaged property tax is in an advanced stage of design and therefore, it is premature to outline specific details of rates and
expected to yield 0.2% of GDP by 2025 and 0.4% of GDP in a full year in 2026
The design of the tax will also ensure appropriate set off mechanisms to avoid double taxation and any elements that distort economic
many countries including developing countries like India since they are considered to be a highly efficient, progressive, and non-distortive
required legislation and is expected to come into force in April 2025
In addition to completing the legislative process, there is significant administrative work required to be done in terms of improving
valuation mechanisms and databases in order to implement this proposed tax measure that was first announced in March 2023 with the
The Inland Revenue Act No
required level of government tax revenue that can fund public expenditure would lead to a recurrence of the economic crisis that had
devastating impacts on the entire country.
