The Cabinet of Ministers has approved a proposal to reduce the pay-as-you-earn (PAYE) tax, following approval from the International Monetary Fund (IMF).

The proposal will be included in the next budget, which will be presented in November this year, according to Cabinet Spokesman Minister Bandula Gunawardena.

Tax Reductions:

Monthly Income of Rs. 150,000: Current tax of Rs. 3,500 will be reduced by Rs. 500 to Rs. 3,000.
Monthly Income of Rs. 200,000: Current tax of Rs. 10,500 will be reduced by Rs. 2,100 to Rs. 8,400.
Monthly Income of Rs. 300,000: Current tax of Rs. 35,000 will be reduced by Rs. 8,600 to Rs. 26,400.
Monthly Income of Rs. 450,000: Current tax of Rs. 88,500 will be reduced by Rs. 16,500 to Rs. 72,000.
Monthly Income of Rs. 600,000: Current tax of Rs. 142,500 will be reduced by Rs. 16,500 to Rs. 126,000.

Minister Gunawardena stated that the reduction is aimed at providing relief to professionals and private sector employees. The adjustments to the PAYE tax structure are intended to alleviate the financial burden on individuals with varying income levels.

The changes will be incorporated into the upcoming budget proposal, reflecting the government's commitment to easing tax pressures while adhering to IMF agreements.