Siyambalapitiya announces delay in tax changes

Saturday, 30 December 2023 01:46 - - {{hitsCtrl.values.hits}}

Delay in tax applies to vehicle registration, revenue licenses, property purchases
The move comes amid importer tactics and alcohol price concerns

State Minister of Finance Ranjith Siyambalapitiya yesterday revealed a one-month postponement in implementing tax changes related to vehicle registration, revenue licenses and property purchases.

Originally, scheduled for 1 January, individuals now have time till February to initiate these processes without dealing with the newly proposed tax adjustments.

The State Minister noted that opening a tax file online is a straightforward process and clarified that registering does not automatically subject individuals to income tax. “Only those with incomes exceeding Rs. 100,000 will be liable for taxation,” he added.

Addressing another economic matter, Siyambalapitiya expressed concerns over the surge in daily container imports, surpassing 1000 units.

He attributed this spike to importers capitalising on the impending Value Added Tax (VAT) increase.

“Importers are reportedly hastening the clearance of goods before the VAT rises to 18% on 1 January,” he said.

He also urged media intervention to curb such practices, insisting on the collective responsibility to safeguard economic stability.

Commenting on the impact of VAT adjustments, the State Minister acknowledged the necessity of revisiting alcohol prices due to increased taxation.

Despite essentials like fuel, gas, and chemical fertilisers being subject to VAT, the decision to exempt Ports and Airports from the tax would contribute to a rise in the prices of non-essential goods, particularly alcohol.