Sri Lanka Finance Minister introduces tax concessions to boost growth
Thu, Aug 17, 2017, 06:54 pm SL Time, ColomboPage News Desk, Sri Lanka.
Aug 17, Colombo: Sri Lanka Minister of Finance and Mass Media today announced a series of tax concessions for local entrepreneurs in a bid to boost economic growth and generate employment.
The Minister addressing a press conference today announced the concessions including the withdrawal of Telecommunication Levy on Internet data and duty reductions on single cabs, mini trucks and motorcycles below the engine capacity of 150cc.
The duty on motorcycles which are less than 150cc has been reduced by 90% with effect from midnight today (17). The ad-valorem 90% duty rate based on the value of motorcycles will be removed. Accordingly, the new tax rate for less than 50cc motorcycles will be Rs. 500/CC and Rs. 1000/CC for 50-150 CC. Substantial price reductions will be introduced, especially for Japanese motorcycles.
The excise duty on mini trucks and single cabs has been reduced by Rs 300,000 with effect from midnight today. Accordingly, the tax on single cabs and mini trucks has been reduced from Rs.1,000,000 to Rs.700,000.
Minister Samaraweera announced that the 10 percent Telecommunication Levy on pre-paid Internet data would be completely removed from September 1. He said the providers had agreed to provide 10 percent additional data to their consumers in response to the Government's move.
The Minister said Sri Lanka is doing well despite the extreme weather conditions and unfavorable global economic conditions and the government expects the local entrepreneurs to boost production.
Minister Samaraweera expressed hope that the new concessions package will boost economic growth and generate at least 50,000 new jobs.
In addition to the tax concessions, the Minister announced eight new loans with concessionary interest rates for several selected sectors targeting small and medium entrepreneurs and export-oriented entrepreneurs.
Concessionary loans schemes will be instituted for those involved in the agricultural sector and in poultry farming, for school transport service, for the promotion of solar power, for journalists and a housing loan scheme for low income families.
Deputy Finance Minister Eran Wickramaratne and Secretary Dr. R H S Samaratunga were also present at the press conference.