Parliament Tuesday the controversial land tax bill, paving the way for foreigners to be taxed 100 percent whenever they buy properties. The Tax on Transfer of Property Bill, reverts back to an earlier Act No: 11 of 2002, which discourages foreigners from owning local properties.
The opposition United National Party, opposed the tax in principle, but did not vote against it.
There were number of amendments to the bill, which includes exempting BOI companies – with foreign ownership – from paying 100 percent tax.
The government pushed ahead with the bill after non-nationals went on a shopping spree snapping up prime beach front properties in the South.
But the new government said it was bringing back the tax to save the remaining coastal properties.
-LBO Newsdesk: LBOEmail@vanguardlanka.com