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Sri Lanka to impose capital gains tax, raise other taxes

Mar 08, 2016 15:15 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT – Sri Lankan Prime Minister Ranil Wickremasinghe said the government will revise the 2016 budget and raise taxes to increase revenue and keep the budget deficit and debt under control.

He announced in parliament that a capital gains tax would be imposed and a uniform value added tax (VAT) would be charged at 15 percent, eliminating the current two-band structure and ending exemptions including to telecoms, private education and health services.

The Nation Building Tax will remains at 2 percent and income tax raised to 17.5 percent from 15 percent.

Wickremasinghe said the government was having talks with the International Monetary Fund on a new tax system to be implemented from 2017.

The capital gains tax would be re-imposed since high income earners had increased their wealth in the past decade with land and stock prices rising.

“We can’t always tax only the poor – we need to tax the rich as well,” he said.

He also announced a proposal to open a budget office in parliament.

Wickremasinghe said the government debt burden was 9.5 trillion rupees and could rise.

The central bank could raise interest rates again after its recent hike maybe before the expected rate hike in the United States.
(Colombo/March08/2016)
 


 

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1 Comments

  1. DS March 09, 10:23 AM

    Ranil is the most unfortunate leader to rule Sri Lanka. After Premadasa was assassinated he became PM and ran the 1994 general elections under his leadership as DB Wijetunage was keen to retire. His unprecedented series of defeats started from there loosing to Chandrika. Then he lost UNP leadership election to Gamini Dissanayake and came back as UNPs leader uncontested after GDs assassination. Until now for 22 years he remains UNP leader despite loosing election after election. From 1948 to 1994 for 26 years we saw some great leaders DS Senanayake, John Kotelawala, Dudley Senanaya, JR JAyawardane, R Premadasa. 6 great charismatic leaders all in all 8 lead this majestic party for 46 years. The balance 22 years we see great looser still at the top of the party. During these 22 years he evaded 2 presidential elections due to fear of loosing. For 22 years Ranil's mind is in a state of defeat and loss. He brought his party to unpredented levels of loss and defeat. Even at lowest popularity of MR, still he could not lead his party to a comfortable victory to secure 113 seat majority in 2010 parliament elections. So still he is battling out for survival with the help of MS. So it is this person with a loss and defeat written all over him is leading our country now. The fate that UNP suffered under him will befall on the country he is leading, that is Sri Lanka. Universal principles cannot be manipulated by anyone and his strategies will bring unfortunatel results and misery leading to loss of prosperity to Sri Lankans. Reimposing capital gains tax is another strategic blunder in that direction.

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