Several taxes amended -- Tax concession package from new government

Several taxes amended -- Tax concession package from new government

New cabinet media spokesman minister Bandula Gunawardena revealed at a media briefing held this afternoon that a package consisting several tax concessions for the masses was approved at the first cabinet meeting of the new government convened today (27). As such, some of these concessions would be implemented from December 1st.

The minister stated that amendments would be carried out on personal tax targeted under 'direct tax',
and company tax targeting profits earned and under 'indirect tax' the VAT imposed on goods and services and banks; special goods and service tax and the entire tax scheme as a simple customs levy. It was revealed here that VAT which remained at 15 percent would be collectively reduced to 8 percent and would apply only to those earning an income of more than 25 million who come under that business category.

According to the package, the following concessions apply:

Abolishing the nation building tax levied on domestic goods,

Abolishing the economic service charge,

Debit tax on banking and financial institutions to be abolished,

Capital gains tax on the share market to be abolished,

Pay as you earn tax (PAYEE) to be abolished,

Tax on interest income to be abolished,

Credit service tax to be abolished,

Income tax on the construction industry is to be educed from 28 percent to 14 percent,

The VAT charged on condominium properties to be abolished,

All taxes imposed on religious places to be abolished,

Taxes imposed on remittances made by expat workers to be abolished,

Telecommunications levy to be reduced by 25 percent,

All earnings from the plantation industry to be free of tax.