Sri Lanka’s tax regime will be maintained stable at the present level in the next five years without undergoing any changes, Presidential Secretary Dr. P.B. Jayasundara has vowed sternly.
Presidential Secretary Dr. P.B. Jayasundara has strictly assured that Sri Lanka’s tax regime will not undergo any changes for the next five years and that Value Added Tax (VAT) will remain as 8 per cent.
He gave this assurance when he he addressed an economic conference in Colombo today (23)
Dr Jayasundara said “We’re assuring that tax regime which we have scheduled will not change. Next five years, VAT is 8%. Income tax is whatever rate we’ve gazetted.
No other taxes will be brought. Custom base taxes will be rationalised. The country needs much more efficient, transparent, compliance, friendly tax regimes and that is given.
The revenue if you want to raise the turnovers, raise the volume, raise the GDP that is what it is all about. So the Treasury Secretary is not allowed to make any more changes in taxes, he added.
However the cabinet has given approval for a slew of tax changes introduced in 2019 and also proposed in Budget 2021 to be implemented ahead of the commencement of the new tax year, a senior minister said recently.
Cabinet Spokesman Minister Keheliya Rambukwella told the weekly Cabinet briefing that Cabinet had approved necessary changes to the Inland Revenue Act No. 24 of 2017 and the Value Added Tax No. 14 of 2002 in order to implement tax reforms introduced by the Government shortly.