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The ESC tax bomb could land on your doorstep next week but if you ignore it, you’re in for bigger damages. The Inland Revenue Dept is targeting Rs 1.
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5 bn this year from the ESC (Economic Service Charge) and have nearly 3,400 companies in their sights - even before the law is in place.
“We have already identified nearly 3,400 companies that are eligible for ESC. We will send out letters next week asking them to register,” said Commissioner- LTU, Inland Revenue, R P L Weerasinhge.
All businesses and partnerships with a turnover of Rs 50 mn and above are required to pay up one percent of turnover as ESC.
Companies that are not lucky recipients of letters from the Inland Revenue, announcing eligibility for ESC, are expected to register voluntarily anyway.
But while the Inland Revenue is busy drafting invitations to the ESC club, that will probably reach their destinations next week, there is no law in place to justify this.
The Inland Revenue Amendment Bill, although approved b