Sri Lanka’s Finance Minister expects enhanced economic freedoms and FDIs through new income tax code
Sri Lanka’s Finance Minister Mangala Samaraweera has reportedly said that the country’s new income tax code which is to come into effect from April 1st this year will enhance economic freedoms and attract foreign direct investments.
“At the current phase of international economic standing as a middle-income country, Sri Lanka does not allure significant amount of foreign aid and grants,” Samaraweera has told a seminar on the new Inland Revenue Act.
“The elimination of tax exemptions will create a level playing field for everyone to do business, moving away from the culture of preferential treatments,” the Minister has been quoted as saying in the local media.
Sri Lanka also aims to enhance tax payer protections and provide greater certainty.
According to the Finance Minister, the existing tax code was too complex. It had more than 200 ad-hoc tax concessions.
“Our Government has shown steadfast commitment towards making an investor-friendly environment by carrying out necessary improvements in doing-business and providing infrastructure and other facilities.
“Every citizen who wishes to be an entrepreneur will have an environment of transparency, fairness and equity in future Sri Lanka once our new rules-based legal system in operation,” Samaraweera has further noted.
The Sri Lankan government is committed to building an environment that would ease the doing-business conditions in the country. The new income tax code is also expected to encourage foreign direct investments (FDIs) given the simplification of the country’s tax structure. With the government’s commitment towards e-governance, it would make it more convenient to foreign businesses/investors to do business with Sri Lanka.
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