Concerns are rising among apartment developers that the proposed transfer tax on land may hit the industry.
The Ministry of Lands announced a Cabinet decision to re-introduce the 100 percent tax on land purchased by foreigners on Thursday.rn
rnIn the late nineties the tax was relaxed to allow the upper floors of an apartment block to be sold to non-residents without the transfer tax, because upper floors were effectively lquote on the sky.rn
rnThe UNF administration abolished the transfer tax altogether, resulting in non-residents buying up large tracts of land in the South Coast.
This has raised the ire of some Sri Lankan. rn
rnBut there is no clear indication as to how the government will re-introduce the tax.rn
rnFinance Minister Sarath Amunugama says it is only a cabinet decision, which deals with land and details will have to be worked out when the government submits a bill to parliament.rn
rnMany interpret this to mean that government would go back to the situation that prevailed bef