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Friday, June 04, 2010 - 5.45 GMT |
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More tax reductions |
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The Cabinet granted approval to a memorandum submitted by President Mahinda Rajapaksa as Minister of Finance and Planning to annul the taxes amounting 22% being levied as printing tax in importing foreign currencies. These taxes are Port and Aviation Levy, Nation Building Tax and Vat.
This measure will help the importers in establishing LCs at a cheaper cost and will become competitive with the Black Market Operators.
The Cabinet granted approval to make the 4 categories of tax strands into 3 strands and thereby reduce taxes levied for many categories of imports.
Accordingly instead of the tax strands of 2.5, 6, 15 and 28% tax levy in future it will be three strands amounting to 5, 15, and 30%. The earlier Tax levy applicable to import of raw materials representing 2.5 will become zero percent and the earlier 6% will get reduced to 5%.
The Excise Special Provisions Levy has been restructured to reduce tax levied for import of vehicles and certain other goods.
Removals of Cess Tax charged for import of certain raw material required by the local industry and maintain/increase Cess Tax levied for import of certain goods which could affect the local industry.
Meanwhile, the Cabinet also granted approval to a memorandum submitted by the Minister of Environment to enter into an agreement, on obtaining approval of the Attorney General’s Department and the treasury scrutiny, with the Horizon Renewable Energy Private Ltd., to covert the Bloemendhal Road Garbage Dump as raw material and establish Power Supply Project utilizing garbage.
SAARC member countries will enter into service exchange agreements. The Cabinet granted approval based on consent arrived at the recent Thimpu SAARC Summit.
The Cabinet also granted approval to construct a seven storied Car Park in a Government land adjacent to the Dehiwela Zoo at a cost of Rs. 325 Million.
The park will be capable of housing 300 vehicles at the initial stage it will able to accommodate 189 vehicles.
A Committee will be appointed to look into loss making Government institutions. The Cabinet granted approval to appoint a committee consisting representatives of Government Resources and Entrepreneur Development Ministry, Finance and Planning Ministry, Industry and Commerce Ministry, and Central Bank to look into the loss making Government Institutions and recommend necessary steps to improve their performance.
The Cabinet granted approval to establish a new Financial Institution by amalgamating National Development Trust Fund, National Development Trust Company, and Sri Lanka Savings Bank as a measure to provide better facilities to small entrepreneurs in obtaining credit facilities and other financial services.
This measure will also immensely reduce the overheads made by the separate institutions.
The Cabinet also granted approval to empower the Attorney General’s Department to prepare the legal structure necessary to bring the National Building Research Organization of the State Engineering Corporation as a legal institution covered by a parliamentary Act to conduct research and provide the services of identifying areas prone to landslides, to have an early warning system in place and to minimize the risk of a landslide damage.
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