ECONOMYNEXT – Sri Lanka has removed an exemption on cigarettes for National Building Tax, a non-recoverable turnover tax, while exempting construction projects over 50 million US dollars and some imports.
These include unprocessed gemstones, hotel services provided in foreign currency, alfalfa meal and pellets, palm oil imported for local value addition and yachts.
The changes were introduced by Finance Minister to parliament on October 23, based on policies announced in the budget for 2019.
The changes are as follows.
(i). Exemption applicable on the importation of unprocessed gem stones will be granted on the approval of National Gem and Jewellery Authority if the payment such services is in foreign currency and remitted to Sri Lanka.
(ii). Exemption applicable on the services provided by the construction sub-contractors will be extended to the main contractors as well.
(iii). Exemption of hotel services provide for foreign currency
(iv). Exemption of importation of Lucerne (alfalfa) meal and pellets.
(v). Exemption of locally value added imported palm oil.
(vi). Exemption of importation of yachts and other vessels for pleasure or sports.
(vii). Removal of exemption ofcigarette.
(viii). Exemption of projects with an investment of USD 50Mn or above during the project implementation period or the construction period.