UNP outlines Sajith’s tax concessions

Tuesday, 12 November 2019 00:00 - - {{hitsCtrl.values.hits}}

State Minister of Finance Eran Wickramaratne

Plans to combine NBT and VAT
Pledges to continue revoking para-tariffs
Focus remains on making SL economy more competitive

The United National Party (UNP) yesterday outlined broad tax concessions to foster local industries and make the economy more competitive if New Democratic Front (NDF) presidential candidate Sajith Premadasa was elected.

Speaking to the media at the NDF’s Vauxhall Street campaign office, State Minister of Finance Eran Wickramaratne said NDF presidential aspirant Premadasa would introduce equitable tax policies that would focus on increasing direct taxes and reducing impact on low-income households.

“Our candidate’s vision on tax policies is very equitable. In his view, indirect taxes should be reduced and direct taxes should be increased so that low-income households will not be disproportionately affected by taxes,” Wickramaratne said.

He noted that if Premadasa was elected, he would introduce a simple tax system that would be more convenient for the public. Wickramaratne noted that Nation Building Tax (NBT) and Value Added Tax (VAT) would be merged into a single tax and reduced to 12.5%.

Wickramaratne stressed that para-tariffs would be abolished in five years to improve Sri Lanka’s economic competitiveness. Referring to mobile data charges, he noted that the taxes imposed on mobile data would gradually reduce but did not say by how much.

Moving on to promoting Information Technology (IT), Wickramaratne said taxes imposed on IT-based business ventures would be gradually reduced.

“We are expecting to promote IT-based products as the second highest exports of the country in five years. The IT sector will be a key segment of our economy, which will contribute immensely to the economy.”

He noted that if Premadasa was elected, the dividend tax of IT-based businesses would be revoked to create a business-friendly environment in the country. He also noted that taxes on gem industry equipment would be suspended.

Wickramaratne stated that Premadasa would also introduce a venture capital fund which would finance the capital needs of young inventors seeking to create start-ups.