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Sri Lanka to have special GST tax, investment relief for bonds, stocks

ECONOMYNEXT – Sri Lanka will have a special goods and services tax (GST tax) for items such as vehicles, cigarettes and alcohol, Prime Minister and Finance Minister Mahinda Rajapaksa said.

He said the value-added tax will be maintained at 8 per cent for companies with a threshold of 25 million.

Tax files relating to pre-2020 laws will be closed with a concessionary fee as a full and final settlement.

Import duties on construction equipment will be abolished.

Tax relief will be given for companies engaged in re-cycling building materials.

Multi-national firms that cater to the domestic market will be given tax incetives if they start exports. Those who keep reserve in the country will also be given relief.

Sri Lanka proposes to give 50 per cent off from income tax for all the companies that will be listed under CSE beforE 31.12.21. After that to keep the tax at 14 per cent up to 3 years.

Companies listing in the stock market to have 50 per cent of the normal tax rate, and concessionary rate of 14 per cent for 5 years.

Capital gains taxes on real estate investment trusts to be lifted to encourage REITs.

Foreigners and expatriates will be encouraged to buy apartments.

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Up to 100,000 investment relief as a qualifying payment for investors in Treasury bills and stocks.

Investment relief will be given for those setting up bonded warehouses to promote commodity trading.

A 0.25 per cent social insurance fee will be introduced for companies. (Colombo/Nov17/2020)

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