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)