Cabinet approves revision of tax policies and policy actions for economic revival

The Cabinet of Ministers granted their approval for the introduction of a simple yet accountable, efficient tax methodology so that it would be a tailor-made application for all the stakeholders in the economy including commuters, workforce, entrepreneurs as well as tax payers. 

The proposal was submitted by President Gotabaya Rajapaksa at the Cabinet meeting held on the 27th November, 2019.

The government has taken precautionary measures to issue state finance and financial catalysis for all the stakeholders in the economy including low-income holders, entrepreneurs, micro, small and medium scale entrepreneurs, those engaged in tourism, and the farmers in order to minimize the negative impacts caused to the production activities as well as the employments due to COVID-19 pandemic. 

The Central Bank of Sri Lanka, with the intention of easing the financial crisis on the shoulders of the entrepreneurs, has taken steps to enhance the liquidity of the financial market.

The government says that it is expected that the economy will be back to normalcy during the latter part of the year 2020 as a result of these remedies.

The Cabinet of Ministers approved the proposal submitted by the Minister of Finance to table the draft bills prepared by the Legal Draftsman in the Parliament after publishing them in the government gazette notification in order to revise the following acts accordingly.

i. Nation building tax act No. 09 of 2009
ii. Economic services fees act No. 13 of 2006
iii. Ports and aviation development tax act No. 18 of 2011
iv. Financial act No. 35 0f 2018

Furthermore, the Cabinet of Ministers also approved the proposal submitted to seek approval for directing the Legal Draftsman for the formulation of the drafts required for revising the following acts.

i. Inland Revenue act No. 24 of 20t7
ii. Value added tax act No. 14 of 2002