Salaried workers earning up to Rs. 162,500 a month will pay no income tax under Budget 2027, up from the previous limit of Rs. 150,000.
Those earning above the threshold also benefit from wider tax brackets, saving salaried workers between Rs. 750 and Rs. 15,750 a month.
The Budget also cuts import taxes on everyday food items from November 13, 2026. The tax on sprats falls from Rs. 100 to Rs. 10 per kg, and the tax on Maldive fish from Rs. 302 to Rs. 10 per kg. The tax on dried chillies is cut by Rs. 50 per kg.
VAT has been removed completely from school exercise books, textbooks, dictionaries, encyclopedias and children’s drawing books.
Government employees will receive the third and final phase of their basic salary increase, with Rs. 110 billion allocated. Public servants who retired between 2020 and 2024 will g et an extra Rs. 2,500 a month from July 2027, until their pensions are formally revised in 2028.
