Sep 13, 2017

No truth to reports of tax increases, new taxes Featured

There is no truth to certain media reports that the new inland revenue act will raise taxes in various fields while introducing new ones for others, says a finance ministry spokesman.

The act, adopted by parliament has proposals of IRD trade unions and opposition parties incorporated in it, he said.

The spokesman noted that falsehoods had been carried from the outset that it would impose taxes on religious places and remittances by Sri Lankans working overseas.

Also, contrary to allegations, interest income from savings of senior citizens are exempted from tax up to Rs. 125,000 per month, for which a Rs. 15 million or more deposit is needed, he said.

Simplifies the tax regime

The spokesman went onto say that the new act has simplified the tax regime and abolished tax concessions granted in a haphazard manner to various persons, companies and institutions.

It specifies the concessions that the investors could obtain for their investments and they do not have to go after politicians for tax concessions, he said.

As the PAYE limit has been raised from Rs. 750,000 to Rs. 1.2 million per year, many will be exempted from that tax as well, noted the spokesman.

colombo stock exchange
No listed company will have to pay the capital gains tax

Also, no company listed at the share market as well as the share sale income will come under the capital gains tax as alleged.

Furthermore, no EPF beneficiary will have to pay taxes under the new act, he said.

It has not imposed any tax on hospital services or charges, and only the year-end PAYE on private hospitals has been raised to 28 per cent, which will not impact services to patients, the spokesman added.

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