Sri Lanka cabinet clears changes to tax laws

ECONOMYNEXT – Sri Lanka’ cabinet of ministers had cleared changes to tax laws to give effect to taxes that were slashed by the new administration.

The laws have to be passed in parliament. The Department of Inland Revenue had issued instructions to cut taxes before the laws were changed.

The changes were made to the Nation Building Tax (a turnover tax), Ports and Aviation Levy (an import duty), Economic Service Charge and Valued Added Tax.

The amendments already drafted were cleared by the cabinet and would not be published in the government gazette and presented to parlaiment

Changes were also proposed o to income tax laws to lift withholding tax, amend income tax rates.

The cabinet of ministers had also approved a proposal by the finance minister to instruct the legal draftsman to draw up changes to the law. (Colombo/Jan10/2020)