Budget 2018-19 - income tax : reducing the gap between rich and poor

The Minister of Finance is willing to reduce the gap between the rich and the poor. Hence he has come forward with these measures:

• Increasing the income exemption threshold of all employees by Rs 5,000. Hence, an employee with an annual income of Rs 305,000 will not have to pay any income tax
• Decreasing the income tax rate from 15% to 10% for those earning between Rs 305,000 and Rs 650,000 annually. Income tax payers earning a maximum of Rs 50,000 monthly will hence pay up to Rs 18,000 less in income taxation annually.
• Employees receiving a lump sum as severance, pension or retiring allowance, we are increasing the exemption threshold from Rs 2 Million to Rs 2.5 Million.
• A retired person will now be eligible to the enhanced income exemption threshold granted to retirees even if he derives emoluments provided that such income does not exceed Rs 50,000 in an income year.
• The additional income tax deduction in respect of a dependent child who is pursuing tertiary studies is being raised as follows: if abroad, from Rs 135,000 to Rs 200,000; and if in Mauritius, from Rs 135,000 to a maximum amount of Rs 175,000.