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Green lobby exempted from VAT while healthccare draws tax

Nov 15, 2016 05:02 AM GMT+0530 | 3 Comment(s)

ECONOMYNEXT - Sri Lanka's renewable energy businessmen, who are making billions of rupees by selling high priced power to the people, have been exempted from value added tax when they build plants, while healthcare is taxed.

Renewable energy businessmen have built close ties to rulers and through intensive public relations activities also win privileges and avoid paying their fair share in taxes in most countries they operate.

Rather than paying taxes, many renewable energy industrialists get tax benefits at the expense of the public.

In Sri Lanka some forms of renewable energy such as wind have been given excessively high feed in tariffs.

The tax free status of renewable energy lobby comes as the new administration has taxed healthcare.

In another bizarre move, the administration also said state-run Ceylon Electricity Board will also be exempted from VAT on plant and machinery, conferring a partial zero-rated status on what should be an exempted industry (input credit paying sector). (Colombo/Nov15/2016)


 

3 Comments

  1. Jayantha November 16, 06:38 AM

    Hmmm...I never realized it. No wonder people call these greenscams.

  2. The Lobby November 16, 02:26 AM

    Another desperate try from the thermal lobby to stop the inevitable change towards a green future: for how many decades have billions of dollars been poored down the drain to pay for unnecessary imports of fossil fuels? I cannot believe the stupidity of such articles...

  3. Nana November 15, 08:54 AM

    While it is not correct to Tax Healthcare specially in a Country Free Health is provided, it is also not wrong to give Tax benefits to Green Business who start to compete with Conventional business with risky investments.

    This time, I dont get the logic of EN article. Green energy is the future. We must encourage them, unless nobody will take the risk. Later when cost go down (Like solar) and enough customers buy them , you can start taxing them,.

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