On 12 November 2021, the Minister of Finance presented the budget proposals for 2022 that include following key tax measures:
- A one-time surcharge tax at a rate of 25% on companies or individuals with a taxable income exceeding Rs. 2 billion for the year of assessment 2020/2021;
- Tax relief or concessions for investments regarding the establishment of certain schools and hospitals;
- An increase in the value added tax (VAT) rate on financial services rate payable by specified institutions from 15% to 18% for the period from 1 January 2022 through 31 December 2022;
- Repeal of the tax exemption on “surgical and dental instruments” regarding the import or supply of goods;
- Implementation of a special goods and services tax (GST) from 1 January 2022; and
- An increase the tax on cigarettes by Rs. 5, effective immediately.
