Sri Lanka's State Minister for Finance, Ranjith Siambalapitiya, has announced the introduction of a new property tax scheduled to take effect from the year 2025. The tax is set to be imposed on individuals who own substantial properties, in accordance with the recommendations put forth by the International Monetary Fund.

Minister Siambalapitiya emphasized that this new property tax will primarily target individuals with extensive property holdings, including real estate assets. The move is seen as a vital step towards ensuring a more equitable tax system and enhancing revenue collection for the country.

The Ministry of Finance has conducted an assessment, revealing that certain property owners, particularly those possessing valuable real estate holdings, have not been accurately accounting for their properties in the existing tax framework. This underreporting has raised concerns about potential tax evasion, which this new property tax seeks to rectify.

The State Minister acknowledged that the Ministry of Finance has already received a multitude of proposals regarding the implementation of this property tax. These proposals have received considerable attention and scrutiny from the Ministry, indicating the seriousness with which the government is approaching the matter.

The introduction of the property tax is expected to have widespread implications for property owners, particularly those with substantial holdings. While the specifics of the tax structure are yet to be unveiled, it is anticipated to be based on property value and size, aimed at ensuring that larger property owners contribute proportionally to government revenue.