New tax act puts 14% tax on charities - Bandula
July 17, 2017 10:27 pm
MP Bandula Gunawardena stated that a suggestion has been made to impose a 14% tax on charities under the new tax act.
The statements were brought out during a media briefing held regarding the new Inland Revenue Act, after paying homage to the Chief Monk at the Asgiriya temple, Ven. Warakagoda Sri Gnanarathana Thero, today (16).
He further added that according to the third clause found in the tenth Inland Revenue Act (2006) - charities, artists, writers and small businesses were excluded from taxes.
However the new act will have removed this clause, meaning that those entities would have to pay a tax sum as well.
Furthermore, Bandula added that he was disappointed to see that places of religious worship and charities have been removed from their tax exemptions.
He added that by discouraging charitable institutions and religious establishments, to earn tax revenue, the country might have to face a cultural decline in the future.