Sri Lanka to Introduce New Regulations to Prevent Tax Evasion via Insurance Policies
Deputy Minister of Finance and Planning, Dr. Anil Jayantha, has announced that new regulations will be introduced to prevent the use of insurance policies as a means of evading withholding tax.
He stated that the government has received multiple complaints regarding individuals depositing funds into insurance schemes as savings in order to avoid tax obligations.
According to the Deputy Minister, amendments to existing tax collection rules and regulations have already been implemented, with further reforms being prepared to strengthen enforcement.
The proposed changes aim to specifically block loopholes that allow insurance products to be misused as tax avoidance instruments. The government’s objective is to ensure that such financial practices do not reduce taxable income unfairly.
He emphasized that preventing tax leakages is essential for widening the country’s tax base and improving the efficiency and fairness of the national tax collection system.
