Sri Lanka’s construction sector commends government’s tax reductions
President of the Ceylon Institute of Builders (CIOB) and a Vice President of Chamber of Construction, Dr. Rohan Karunaratne has reportedly stated that the reduction of tax components in the construction industry on Pay As You Earn (PAYE) tax to 14% from the original 28%, Value Added Tax (VAT) from 15% to 8% on the directive of Sri Lanka’s President Gotabaya Rajapaksa was appreciated by the leading institutions and the trade chambers in construction sector.
“This PAYE Tax and VAT reductions will support the industry to be developed in the long term which had been moving in a downward trend,” he has been quoted as saying in the local media.
“The majority of the business community, professionals, employees and their families in the construction industry supported Gotabaya Rajapaksa at the Presidential Elections. In addition to that the trade chambers, and member institutions also proposed some suggestions to Rajapaksa on how to develop the declining construction industry once again. The only goal of all of us was to safeguard construction industry on which about 5-6 lakhs of people earn their living which makes a significant contribution towards the country’s GDP. Rajapaksa responded positively to our proposal as soon as he became the President of Sri Lanka. We value it very much.”
OSL take:
The aggressive development programme of Sri Lanka has given a massive boost to the country’s construction sector. The overall growth in the country’s economic activities has increased the demand for property development in Sri Lanka. This has created many business opportunities in Sri Lanka’s construction sector, which is continuing to increase. The increasing business/investment opportunities in Sri Lanka’s construction sector could be explored by foreign businesses.
| Article Code : | VBS/AT/23122019/Z_3 |