Country | Status of the tax | Rationale | |||
India | Abolished in 2015 | There was substantial evidence that the cost of administering the wealth tax was substantially higher than the revenue generated from the tax. | |||
France | Abolished in 2018 | Administration costs were far higher than the returns from tax. Instead of a wealth tax imposed a flat tax rate on capital gains. Issues surrounding how to determine the net worth of an individual was a significant contributor to capital outflows from the country. | |||
Sweden | Abolished in 2007 | Sweden implemented a wealth tax for most of the 20th Century, though its revenue never accounted for more than 0.4% of the gross domestic product (GDP) in the post-war era. One reason is that the levy treated different assets differently. This distorted investment as the wealthy took on debt to buy tax-free assets. In 2007, the government repealed its 1.5% tax on personal wealth valued at over $ 200,000. | |||
Germany | Abolished in 1997 | Recovering taxes was more than the benefit derived. A 2018 study found that Germany’s long-run GDP would be 5% lower with a wealth tax and employment would shrink by 2%. This is identified to be because investors would be disincentivised to invest. The study concludes that the wealth tax’s “burden is carried by virtually everyone, as indicated by the decline in GDP, investment, and employment”. | |||
Austria | Abolished in 1994 | The administrative burden of calculating the exact levy resulted in significant negative externalities. | |||
Pakistan | Abolished in 2003 | This led to a significant outflow of domestic capital and the use of illegal channels such as the “haffala” system to launder money. Abolished due to the negative externalities. |
Is wealth tax the solution to Sri Lanka’s low tax revenue collection?
11 Nov 2021
Is wealth tax the solution to Sri Lanka’s low tax revenue collection?
11 Nov 2021
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!