All provisions of the new IR Act to come into effect from April 01, 2018

All provisions of the new IR Act to come into effect from April 01, 2018

September 13, 2017   04:55 pm

The Ministry of Finance announced that the Treasury has decided to commence taxation under the new Inland Revenue Bill from April 01, 2018.  
  
The Inland Revenue Bill was passed in parliament on September 7, with 90 voting for and 25 voting against. The draft bill that was presented to Parliament back in July was passed following much debate and discussion. 

During the reading of the Bill, Minister of Finance and Media Mangala Samaraweera said that one must pay as much income tax as possible, out of love for the country. He also said that he was happy to be able to introduce a new Inland Revenue Bill if the House required it. 

He also stated that increasing Inland Revenue has become a timely goal, adding that the tax burden was borne by the common man and not those with a higher income.

Samaraweera also said that the rich, despite only constituting 20 percent of the population, were in control of 51.9 percent of the total income, whereas that the poor only had access to 4 percent of the income.

Both the rich and the poor are paying the same quantity with indirect taxes, the Minister said.

“Therefore we must increase direct income taxation.”

He then raised the question: who is against the reduction of indirect taxes?
We hope to introduce a “universal tax file number”, he explained, adding that it would be a simple tax system which did not compel everyone to pay income tax, but rather, only those earning over Rs. 100,000.

Accordingly several revisions were made to the IR Bill to further distribute the tax base of the country and curtail certain Ministerial powers to grant tax holidays.  

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