Avic International apartment complex in the offing

Wednesday, 10 September 2014 00:00 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama Our Lobby Correspondent The Ministry of Investment Promotion yesterday tabled a Gazette notification on a mixed development project at No. 418, 420 and 422 R.A. de Mel Mawatha in Colombo, allowing the construction of an apartment complex. Avic International Hotels (Lanka) Ltd. will be the project company and the venture is listed as a Strategic Development Project. The project is expected to commence commercial operations within a 60-month period from the date stated in the Project Agreement with the Board of Investment of Sri Lanka. According to the Gazette, income tax shall not apply on the profit of the project for a period of 10 years. However, income tax will be applicable on sale of apartments after an initial grace period of six years. Apart from the tax holiday, the project company will also enjoy exception of tax on dividends, withholding tax, PAYE tax, Value Added Tax, Ports and Airports Development Levy, Construction Industry Guarantee Fund Levy and Customs Duty on Importation of Project Related Items.