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Exemption list:
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Starting April 1st, credit card balances will be taxed Rs.10.00 for every Rs.1,000 spent, promissory notes Rs.1.00 for every Rs.1,000 issued.
"Stamp duty is being brought back after it was discontinued in May 2002, as a measure to raise government revenue," Deputy Commissioner (stamp duty) Nandani Abrew told LBO Wednesday.
Proposed under the 2006 budget, stamp duty was given legal effect when parliament approved it on March 21.
Abrew says goods and services that will be covered and the exemption list has not been finalized yet, pending discussions with tax experts and various trade chambers.
She is advising the public to pick up the complete list once the official gazette comes out this weekend.
Sri Lanka's tax revenues hit Rs334.9 billion in the first eleven months of last year, nearing 16 percent of Gross Domestic Product (GDP). Treasury Secretary P B Jayasundara told businessmen last week that the government is aiming to raise the tax to GDP ratio to 19-20 percent in four years.
| Stamp Duty covers: | |
| Affidavit | Rs. 100.00 |
| Insurance policies for every Rs. 1000 | Rs. 0.50 |
| Warrant to act as notary public in any area | Rs. 1000.00 |
| A license issued to carry on any trade or busines | Rs. 1000.00 |
| A claim, demand or request on amount spent on credit cards for every Rs. 1,000 | Rs. 10.00 |
| Issue of shares other than quoted companies for each Rs. 100 of the face value | Rs. 0.50 |
| Mortgage of properties; for every Rs. 1,000 | Rs. 5.00 |
| Promissory note; for every Rs. 1,000 | Rs. 1.00 |
| Lease or hire of property; for every Rs. 1,000 | Rs. 10.00 |
| Receipt or discharge given for any money not less than Rs. 1,000 | Rs. 1.00 |
| Receipt or discharge given for payments of remuneration to staff exceeding Rs. 25,000-Rs. 40,000 | Rs. 25.00 |
| Receipt or discharge given for payments of remuneration to staff exceeding Rs. 41,000-Rs. 50,000 | Rs. 40.00 |
| Receipt or discharge given for payments of remuneration to staff exceeding Rs. 50,000 and above | Rs. 50.00 |
-Mel Gunasekera: mel@vanguardlk.com
Then, they'll have bands of roving goondahs running around robbing everyone in site in the name collection of taxes....
So far as I see it we've got a regular Sheriff of Nottingham running this banana republic so where the hell is our Robin Hood ? ? ?
Why can't the government do something proper to get the non tax payers to get them to pay taxes than squeezing out the max of the existing tax payers who are mostly the average income earners?
To what I remember less than 10% of the liable Sri Lankans pay tax.
How sooner can we go towards a developed country at this rate?
VAT rackets in one end where a few individuals take out money from the IR Dept. in billions and they will be forgotten in a few more months.
Take my word, no one will ever even remember of such a thing taking plc and the guys will walk away with the money.
Aney mehemath ratak......Credit cards are always there to the rescue when u don't have to risk urselves carrying cash everywhere u go, and this is how the government acts.
I hope they abolish this piece of crap with immediate effect, or late most by the next budget.
I mean is there an authentic source we can verify this? It's ridiculous to charge 10/= for every 1000/= spend.
We are taxed when we earn (PAYE) As our money is directly paid to the bank account, we are taxed when we withdraw funds (debit tax) We pay tax when we buy things (VAT) Now, we pay tax on each and every credit card payment (credit card tax)
And the government says that there is a brain drain!! Furthermore, tax on leasing will stiffle growth, as does insurance......
These stupid people discorage e - Transactions..and talking about an e-Sri Lanka...
Let's have as Balu Tax, since the country has truly gone to the dogs.
What can you expect???
We have a superb set of guys at the helm of things.
For example, did you know that the chief of the BOI is a self-proclaimed PROFESSOR who has never been to a university???
And, the governor of the Central Bank is an ACCOUNTANT(!!!!), with absolutely NO economic credentials.
Well, we also have a donkey leading the country and a monkey leading the opposition.
It is truly our fate to suffer these jokers.
Also their is stampduty for Promissary notes & when the time of withdrawal the money again have to pay stamp duty for that amount???????.
Seems like the govt does not want to encourage/promote credit card usage and e-payments . or may be the IR dept. does not know that, or may they don't care.
One more suggestions to the IR dept...... charge a Balu tax from the dog owners-- if the dog wins a contest, the owner shd pay more tax---. Local councils SHOULD pay the balu tax on behalf of the wal balla's they allow to roam in their council areas.
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