Cabinet clears amendments to Inland Revenue Act for Parliament approval

Wednesday, 19 July 2023 00:36 - - {{hitsCtrl.values.hits}}

Cabinet Co-Spokesman and Minister Bandula Gunawardena says move aims to facilitate local debt optimisation

The Cabinet of Ministers approved publishing the Bill prepared to introduce amendments to the Inland Revenue Act in the Government Gazette and to table it in the Parliament for approval.

On 28 June, the Cabinet approved amending the Inland Revenue Act for revising the income tax rate levied on income earned by investing in Treasury Bonds by the Employee Provident Fund (EPF), Employee Trust Fund (ETF), Pension Fund or Gratuity Fund and similar funds to facilitate the local debt optimisation process.

The diligent efforts of the draftsman culminated in the completion of the Inland Revenue Bill, which has now received clearance from the Attorney General.

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister was approved by the Cabinet of Ministers on Monday.

“The proposed amendments seek to provide investment funds with greater flexibility and incentives to optimise their portfolios by investing in treasury bonds. By revising the income tax rate, the Government aims to attract more investments from funds such as the EPF, EFF, Pension Fund, and Gratuity Fund, which play a crucial role in the financial landscape of the country,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

He said the proposed amendments aim to streamline and enhance the local debt optimisation process, ensuring that investment funds can maximise their returns while contributing to the economic stability of the country. “By revising the income tax rate levied on income earned from investing in Treasury Bonds, these amendments will create a more favourable environment for funds to invest in Government securities,” he added.

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