Category Taxation in Sri Lanaka

Sri Lanka to Hike VAT

October 31, 2016 Taxation in Sri Lanaka

VAT in Sri LankaSRI JAYAWARDENEPURA KOTTE – Sri Lanka is looking to hike VAT rates in order to receive further loans from the IMF.

In a recent statement the international credit rating agency Moody’s announced that the recent move by Sri Lanka to implement a VAT hike will aid the country’s efforts to raise its credit rating.

Sri Lanka had previously attempted to implement a higher rate of VAT earlier this year, although the efforts were waylaid by a legal challenge.

However, the new effort to see the tax become a reality are likely to see the VAT rate raised from 11 percent to 15 percent.

Moody’s believes that the higher tax rate will result in higher levels of tax revenues, ultimately aiding the country’s fiscal consolidation and raising the national revenue-to-GDP ratio.

It was also noted that t...

Read More

Sri Lanka Eyes Capital Gains Tax

June 29, 2016 Taxation in Sri Lanaka

UK Taxman Targets Criminal OrganizationsCOLOMBO – Sri Lanka’s stock market is dropping following indications that the government will enact a capital gains tax.

Early this week at a forum of Foreign Correspondents’ Association the Minister of Development of Sri Lanka Patali Champika Ranawaka claimed that the national government will soon impose a tax on gains from land transactions and sales of equities.

The new tax is aimed to raise extra tax revenues, in order to shore up government funds, while also satisfying part of the International Monetary Fund’s conditions for a loan of USD 1.5 billion.

The Minister stated that the exact details of the tax are not yet know, but he did say that “there will definitely be a capital gains tax on land transactions plus the stock exchange.”

This is not the first time that Sri Lanka ...

Read More

Sri Lankan Doctors Strike for Tax-Free Cars

December 4, 2015 Taxation in Sri Lanaka

COLOMBO – Doctors and civil servants in Sri Lanka are threatening to remain on strike and withhold their services until they are given a tax break of up to 300 percent on the purchase of cars.

On October 11th doctors working in public hospitals in Sri Lanka went on strike over the government’s refusal to allow them to purchase cars without having to pay tax.

Currently, car purchases in Sri Lanka are subject to an import tax of between 200 and 300 percent.

Previously doctors and other individuals working in the public sector were granted an exemption from the tax, a measure which the government proposed dropping in last month’s national budget plan.

Representatives of doctors and civil servants have approached the government calling for the tax break to be reinstated, but so far the...

Read More

Sri Lanka Unveils New Budget

November 8, 2012 Taxation in Sri Lanaka

Mahinda RajapakseCOLOMBO – Next year Sri Lanka will try to boost the collection of taxes and allocate greater funding to social development projects.

During the presentation of the national budget in Colombo on November 8th, the President of Sri Lanka Mahinda Rajapakse said that the plan indicated in the budget to increase the rates of some taxes next year will help the government to reduce the budget deficit to the lowest level in more than thirty years, and will allow Sri Lanka to increase the funds dedicated to the development of social and economic infrastructures.

During his speech, the President announced a new tax on buildings and properties held by supermarkets and other high end retail businesses with annual incomes exceeding LKR 500 million per quarter.

The import duties on foreign liquors and ...

Read More

Sri Lanka Sets New Tax Policies

November 22, 2011 Taxation in Sri Lanaka

Tax Changes in Sri LankaSRI JAYAWARDENAPURA-KOTTE – Sri Lanka will devalue its national currency and implement a series of tax policies changes, with the aim of further developing the country’s position rapidly expanding, export orientated economy.

In a speech made by President Mahinda Rajapaksa on November 21st in Sri Jayawardenapura-Kotte announcing the new government budget plan for 2012, a wealth of new

announced a wealth of new taxation measures and fiscal policies aimed at boosting the country’s economic expansion and increasing export levels.
While outlining the plan the President said that Sri Lanka is turning its back on decades of destructive economic policies and social disparities, and will now follow a progressive path aimed at creating an efficient outward orientated economy.

In order to boos...

Read More