Sri Lankan government decides to expand Cess waiver to cover large projects
Sri Lanka’s Cabinet of Minister has reportedly approved the submission of a previously issued Gazette granting CESS exemptions to large projects before Parliament for approval.
Accordingly, goods imported for any project with an investment of US$ 50 million or more, which were operational on or after 6 March 2019, are exempt from CESS tax prior to the commencement of commercial activities on that project.
However, there are no provisions for CESS exemption for large projects that carry out operations in stages, according to local media reports.
The proposal was reportedly tabled by Sri Lanka’s Trade Minister Bandula Gunewardena before the Cabinet of Ministers. The Minister has requested permission to submit a previously issued gazette notification on the CESS exemption to Parliament under the Sri Lanka Export Development Act No. 40 of 1979.
The government of Sri Lanka is engaged in an aggressive development programme covering the entire island. Ranging from mega to mid level projects, this programme is aimed at taking Sri Lanka to the next level of development. Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Sri Lanka’s economic expansion along with the development programme has opened up many business/investment opportunities in Sri Lanka.
|Article Code :||VBS/AT/20210517/Z_5|