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Sri Lanka to enforce several direct taxes next year

Sri Lanka will be enforcing several new taxes while revising some existing taxes in January next year.

Amendments to the Finance Act have already been gazette enforcing several new taxes with effect from January 2019.

A7 per cent ‘Debt Repayment Levy’ on financial institutions that will be charged for every month commencing from the date of commencement of the act, on the value addition attributable to the supply of financial services by these institutions.

Another tax will be imposed on every bank transactions at a minimum of Rs. 10,000 while the Annual Company Registration Levy will be charged on companies registered under the Companies Act No. 7 of 2007.

The amendment also sanctioned a levy on Short Message Services, charging 0.25 per SMS for all bulk advertising messages, payable by the advertiser. Gold import duty will be reduced to 5 percent from 15 percent.

The Luxury Tax on motor vehicles should be made as an upfront payment, according to the proposed Amendments, which will be in lieu of the existing Luxury Tax and the Semi Luxury Tax currently payable in yearly installments.

Cess is removed from 253 items under specified harmonized system (HS) codes facilitating the emerging sectors namely, tourism, pharmaceuticals, value adding industries (such as cement, aluminum, etc.) and other industries (such as specialiszed food items).

(LI NEWS)

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