Tax break for agro sector to woo private investment

Agriculture is to be exempt from income tax, with earnings from the cultivation and sale of non-processed plants, non-taxable for five years from April 1 next year. Agriculture is to be exempt from income tax, with earnings from the cultivation and sale of non-processed plants, non-taxable for five years from April 1 next year. “This should provide incentives for the local private sector to move onto high value agricultural crops including fruits, vegetables, floriculture etc,” Finance Minister Dr. Sarath Amunugama said on Thursday.

Agriculture Highlights

Agricultural seeds and
plants are to be exempt from the Value Added Tax (VAT), to encourage
small and medium growers to take up floriculture.