Parliament passes Sri Lanka’s new Inland Revenue Bill
The Sri Lankan Parliament passed the new Inland Revenue Bill with a 65-vote majority replacing the Inland Revenue Act No. 10 (2006) and contains over 100 amendments.
The vote was done via the recently installed electronic voting system and 90 MPs voted in favour with 25 voting against and 109 abstentions.
Those in favour comprised of UNP and SLFP government MPs and those who voted against were JVP and JO MPs, with the TNA abstaining from the vote.
The new Bill complied with the Supreme Court’s ruling with all the clauses amended to satisfy the Court.
Thought the JO proposed 31 amendments with the JVP putting forward another 70 amendments and the government refused to adopt most claiming that it was counter to Standing Orders to accommodate any amendment that had not been approved by the Cabinet, some of the amendments suggested by the two parties had been included in the government’s amendments.
Issuing the closing remarks State Minister of Finance, Eran Wickramaratne said that the new law prevented ministers from interfering in matters of taxation, adding that places of worship will continue to enjoy tax exemptions granted and not be levied any additional tariff.
He implied that more tax concessions for SME sector and other needy sectors would be announced in the upcoming Budget.¹
Wickramaratne added that the Share Transactions Levy imposed on Stock Market transactions would remain unchanged and the Capital Gains Tax would not apply to those transactions. He also clarified that provisions of the Bill related to corporate sector would come into effect only from April next year.²
OSL TAKE:
The implied tax concession for the SME and other disadvantaged sectors will make it attractive for prospective investors allowing them to introduce new technology and techniques. Also, the fact that the Share Transactions Levy and Capital Gains Tax are to remain as they are at present will have no detrimental effect on the country’s share market.
¹ http://www.dailynews.lk/2017/09/07/local/127624/inland-revenue-bill-passed-parliament
² http://www.dailynews.lk/2017/09/07/local/127624/inland-revenue-bill-passed-parliament
| Article Code : | VBS/AT/11092017/Z_5 |