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Sri Lanka’s BOI companies not exempted from the super gain taxation: Government

Feb 11, 2015 (LBO) – Sri Lanka’s projects approved under the board of investment law will have to pay the one-off super gain tax, a government minister said.
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“We have to charge them also. They never paid taxes.” said, Dr. Harsha de Silva, deputy minister of policy planning and economic affairs.
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Silva speaking at a local television program emphasized that the interim proposals were made in line with the 100 day programme of the government.

“In terms of tax principles we also don’t agree with all the proposals 100 percent.

There are issues especially with regard to the retrospective taxation” he said.

The proposed super gains tax will be imposed on any company or individual who has earned profits over 2 billion rupees in the tax year 2013/2014.

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“But we haven’t increased the taxes of ordinary people, we indeed reduced their taxes” Silva stressed.

Responding to a question raised by a viewer, Silva said the proposed public sector salary increment will only be added to the salary as an allowance.

“As per the 100 day programme, this allowance will not be a part of the basic salary.

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We should rectify the salary anomalies through the salaries and cadre commission first.
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Sri Lanka’s Marxist parties and unions keep pushing the government to raise the burden of bloated public sector by adding cost of living allowances to the basic salary.

Newly appointed finance minister Ravi Karunanayake increased the public sector salaries by adding 7,000 rupees to the proposed 3,000 rupees of former president Rajapaksa’s election focused budget.

“We, as a government can’t just force the private sector to raise their salaries but we do think it will be increased by at least 2,500 rupees.

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” Silva said.

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