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Sri Lanka

Government shifts tax burden to the public while exempting large corporations

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The 2025 budget has shifted the financial burden onto the general public, including small businesses, while completely exempting large-scale companies, the Frontline Socialist Party (FSP) said.

FSP Education Secretary Pubudu Jayagoda criticized the budget at a media briefing recently highlighting that this year’s budget has been crafted in a way that benefits large companies without considering the interests of the public.

“This is evident from the policies concerning tax revenue. The government continues to impose a 30% tax on large-scale companies, with no action taken to increase that rate. On the other hand, the 10% tax on sole proprietorships has been increased to 15%, and the same increase applies to small one-man businesses.”

Jayagoda also highlighted other changes, including the government’s decision to triple the tax on trust funds and individual funds from 10% to 30%. Similarly, taxes on the assets of non-profit welfare institutions have been raised from 10% to 30%.

“The entire burden of this year’s budget falls on the common people and small business owners, while large corporations have been completely exempted from these taxes,” he added.

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