Tax Collection Reforms to Address Insurance Policy Loopholes

COLOMBO (News 1st) - Deputy Minister of Finance and Planning Dr. Anil Jayantha says that new regulations will be introduced to prevent the use of methods such as insurance policies to evade withholding tax.

He stated that numerous complaints have been received regarding individuals avoiding taxes by depositing money into insurance policies in the form of savings.

According to the Deputy Minister, amendments to tax collection rules and regulations have been implemented.

Among the proposed amendments include regulations aimed at preventing tax avoidance through the use of insurance policies as savings instruments to evade taxes.

The Minister stressed that preventing such leakages is essential to broadening the country’s tax base and strengthening the tax collection system.