New revenue Bill should be implemented from April 2018: Ceylon Chamber

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July 17, 2017 (LBO) – Ceylon Chamber of Commerce says it is their view that the new Inland Revenue Bill, once enacted, should ideally be implemented from 1st April 2018.

The chamber says it will give a longer transitional period for both the tax payer and the Department of Inland Revenue to become fully conversant with the provisions of the law.

The new Inland Revenue Bill, which was gazetted on 16th June 2017, was tabled in Parliament on 05th July 2017. Once passed by Parliament, this Bill will replace the existing Inland Revenue Act No 10 of 2006.

The objective is to broaden the existing tax base, rationalize the existing tax structure, and simplify the language and to align the tax rules with international best practice.

“It is the view of the Ceylon Chamber that formulation of tax policy is the prerogative of the government with due consideration for different stakeholder views,” the chamber said in a statement.

The Ceylon Chamber was engaged in the drafting stages of the Bill and made several representations to the government on behalf of its members and the general tax paying public without compromising the government’s effort of increasing revenue collection.

Some of the key submissions made by the Chamber were to maintain the current law relating to taxing dividends, interest, and the business of life insurance and sale of shares in the CSE.

It also includes concessionary rate of tax for thrust industries such as agriculture, education and exports, simplify the capital allowances structure proposed in the new Bill and to maintain the same tax structure.

“We are happy to note that most submissions were accepted whilst the Chamber is yet negotiating with government to accept certain provisions to do with the practical implementation of the proposed law.”

To refer all submissions made by the chamber to the Finance Ministry during the preparation of the Bill, visit their website and ‘submissions to government’.