Sri Lanka Cabinet approves re-introduction of capital gains tax
ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved a proposal to reintroduce the capital gains tax, government spokesman Media Minister Gayantha Karunatilleke said.
During the past few decades, there had been a massive increase in private capital in the country, he told a news conference.
“The increase in land prices attributable to large infrastructure developments done with government funds have enabled land owners to make significant capital gains free of taxation,” he said.
“This resulted in an increase in the inequality of income distribution.”
The Cabinet Committee on Economic Management agreed to reintroduce the capital gains tax to rectify the situation, Karunatilleke said.
Karunatilleke said the re-introduction of a capital gains tax law was proposed by Prime Minister Ranil Wickremesinghe as chairman of the Cabinet Committee on Economic Management.
(COLOMBO, June 15, 2016)