Tax burden drives thousands of doctors out of country: GMOA

The Government Medical Officers' Association (GMOA) has called on the government to provide additional tax relief for doctors and other professionals, citing an excessive tax burden as a key reason for skilled workers leaving the country. Since 2021/22, over 2,500 specialist doctors have migrated, with taxation being a major contributing factor.

The Association stated that professionals, including doctors, were among the most impacted by personal income tax reforms introduced in January 2023 to boost government revenue following an economic crisis. However, the GMOA noted that the relief provided was insufficient considering inflation, rising living costs, transport expenses, and other economic pressures.

Some medical professionals were reportedly paying nearly 36% of their income in direct taxes, alongside a significant indirect tax burden. The GMOA also expressed concerns over stagnant doctors' salaries and allowances, with certain allowances remaining unrevised for years and reductions in payments for additional duties and holiday work.

Despite the country's improving economic situation, with tax revenue surpassing Rs. 5.4 trillion and 2025 collections exceeding 30% of projections, the GMOA has submitted proposals to President Anura Kumara Dissanayake ahead of the upcoming Budget. These proposals include revisions to the tax-free threshold, tax rates, and income brackets to provide greater relief for doctors and other professionals while maintaining overall government revenue.

The GMOA emphasized the potential long-term consequences of losing highly skilled professionals, including further attrition of intellectual and professional talent.