Govt. gazettes new revenue proposals

17 August 2018 09:45 am - 29 - {{hitsCtrl.values.hits}}

A A A

The government has gazetted a series of amendments to the Finance Act to give effect to several revenue proposals in the budget 2018, including taxes on cellular towers, luxury motor vehicles, vehicle entitlement and carbon emissions.

Further taxes have been slapped on annual renewal of company registrations while all financial institutions have been called to pay a Debt Repayment Levy in a bid to reduce the country’s debt burden.

According to the gazette notification issued last Friday, the mobile phone services companies will have to pay Rs.200,000 per year for every tower they own on a quarterly basis in four equal instalments from January 1, 2019.

The telco operators had lobbied against this proposal at the time it was proposed saying that it could possibly result in major foreign investors in the local telco sector exiting the market.
Nearly 6,750 towers are used by the five mobile operators to support the needs of a population of 20 million. In April this year, Hutch and Etisalat announced a merger, which will result in the number of operators in the market coming down to four.

Meanwhile, any assembled or unassembled diesel motor vehicle of which cylinder capacity exceeds 2,300cc or a petrol motor vehicle of which the cylinder capacity exceeds 1,800cc or an electric vehicle of which motor power of the engine exceeds 200 kW will be liable for ‘Luxury Tax,’ which should be paid at the time of importation to the Director General of Customs.

This one-time tax will not be applicable to vehicles imported by diplomatic missions and dual-purpose petrol vehicles with the cylinder capacity not exceeding 2,200cc.

A tax called ‘Vehicle Entitlement Levy’ has also been slapped on every importer of motor vehicles while a ‘Carbon Tax’, as proposed in the Budget 2018, will be levied on motor vehicles based on their age and fuel type.

Electric vehicles are exempt from the tax. The vehicle owner should pay the tax for every year other than for the first year of registration of the motor vehicle to the Divisional Secretary, on or before the due date of renewal of annual registration.

Meanwhile, amendments to the Finance Act also propose to impose an ‘Annual Company Registration Levy’ for every company incorporated or registered under the Companies Act.

A public listed company will be charged a fee of Rs.1.5 million on annual company registration while a private company will have to pay Rs.30,000. However, this tax will not be applicable to off-shore and limited by guarantee companies.

The amendments to Finance Act further propose to slap a 7 per cent ‘Debt Repayment Levy’ on financial institutions that will be charged for every month commencing from the date of commencement of the act, on the value addition attributable to the supply of financial services by these institutions.

A levy of 25 cents has also been proposed on each mobile short message (SMS) on bulk advertisement through SMS.

The amendments to the Finance Act are to be presented to Parliament for first reading shortly.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 29

Thanos Friday, 17 August 2018 10:50 AM

What does 'Yahapalanaya' have against mobile service providers? And it is not the engine capacity that makes a vehicle luxurious. It is the brand! How much does a Porsche cost compared to a Toyota?

goonbag Friday, 17 August 2018 03:28 PM

sadly sri Lankan politicians and policy makers, lack something called logic.

Premalal Friday, 17 August 2018 09:23 PM

A government ripping off its own people.

Chris Marciano Friday, 17 August 2018 10:53 AM

DisgustedWhy not levy 7% Debt Redemption Tax on the air that we breathe in Sri Lanka from all excepting from the POLITICOS IN THE PARLIAMENT OF WONDER OF ASIA.

Air Friday, 17 August 2018 05:05 PM

Very soon we will be taxed for the air we breathe..

Damithw Friday, 17 August 2018 09:03 PM

Soon there will be : DODO ( Toilet) Tax , and Urinate TAX

Premlalal Friday, 17 August 2018 09:24 PM

R.I.P. U.N.P

Jans Friday, 17 August 2018 10:54 AM

NEW TAX CALLED DEBT TAX ON PEOPLE'S STOP IMMEDIATELY ALL DUTY FREE PERMITS, STOP ALL GOVERNMENT EXTRAVAGANZAS, STOP FOREIGN TRIPS, COLLECT ALL STOLEN FUNDS RETURN THEM TO SRIILANKA BANKS ,STOP COMMISSIONS AS THEY DID NOTHING TO RECOVER MISUSE OR STOLEN MONEY , RECOVER ALL STOLEN BILLIONS FROM CBSL,PLEASE DO NOT PUT HEAVY TACES ON PEOPLE'S AS WE PAY ALREADY ON CONSUMER ITEMS THANK YOU

DJ Friday, 17 August 2018 11:01 AM

While the robbers of the nation are enjoying the loot protected by our law makers in parliament, we the people have to bare the burden to take the country forward. Time to kick these so called people's leaders out for good. Get rid of such expensive grandiose parliamentary privileges the 225 buffons enjoy and appoint one single leader like King not from the present lot though

Mohamed Friday, 17 August 2018 11:06 AM

This is crazy! I mean I get that there’s a debt to be repaid but you can’t just slap this onto your poor loyal voters! You promised to go after the people who stole this money! So do that instead of coming to us.Just because you are afraid to go after the Rajapakse’s because you know they are coming back to power and will come after all of you does not mean you have to subject us to the whole thing!You guys are ruining us and our businesses!

Rajan Friday, 17 August 2018 11:20 AM

All citizens of this country ! It is time that we all rise together and refuse to pay these ad-hoc taxes. If these taxes are used to pay for the healthcare, education, housing, we can understand and as responsible citizen we must pay. But,we read selected MP's are paid Rs.200,000.00 an month as special travelling allowance, western provincial council is buying luxury chairs, PM is proposing 215% pay hike for MP's , Colombo Mayor is proposing pay hike. Minister Rishad Badurdeen is using 7 vehicles, when he is entitled to 3.There is a limit which tax payers can pay.

Raja Friday, 17 August 2018 11:29 AM

Good morning Sri Lanka.Here wo go. We are tasting the bitter fruits of the huge loans taken by the previous Govt. and the continuous exorbitant Govt. expenditure by all Govt's, without having a corresponding Revenue, that the tax payers are called upon to bear.

Sunil Friday, 17 August 2018 11:35 AM

I am no economist, but I believe that these proposals are plain nonsense.

Crazy Friday, 17 August 2018 03:44 PM

Please do reconsider the tax on private companies. At least have some kind of mercy on SME's.. how can we afford to pay Rs. 300,000 annually and still employ people and be competitive in the market? This will only lead to people not registering their companies and not having tax files..because the few that pay are being fleeced.

akila Friday, 17 August 2018 03:49 PM

No wonder they are asking for more security for the Parliament premises

Cynic Friday, 17 August 2018 03:51 PM

You are shooting yourself in the foot. With this kind of taxation, multinationals will never want to invest here. Why dont you speak to your CM of the WP? He has so much 'wealth' he is throwing the money away and insists of encasing his bottom in a 640,000 chair. Surely, thats the cost of 3 towers!

M.M.M.Izzeth Friday, 17 August 2018 03:59 PM

Best thing is to close the company and leave Sri Lanka for ever

Sam Friday, 17 August 2018 04:01 PM

End of the day... all the taxes passes to the customer. We poor citizens have to bear all these. How unfortunate citizens of this country are....

Jaliya Friday, 17 August 2018 04:10 PM

The people of this country have not been taxed appropriately and fairly. The taxes are not high enough ... in-fact I call up -on the government to tax us more ... like weigh the rice and curry lunch plate if overweight with heavy lunch an extra tax can be collected from an individual as an over eater etc ... all this taxes can tally up to a grand total that is called YOU STUPID VOTER TAX.... YOU ELECTED US TO RUIN YOUR LIFE TAX that is an additional 6.5% of grand total.

Premalal Friday, 17 August 2018 04:14 PM

This lot will definitely be wiped out at the next election. Rs 300 000 for annual registration of a private company? This must be a world record. These goons are killing the only reseliant sector of the economy.

Massdeen Friday, 17 August 2018 04:28 PM

Let’s all citizens get together and avoid paying all taxes if not rise against with the people’s power on the road

sss Friday, 17 August 2018 04:29 PM

they need the money to maintain the freeloaders in parliment, president office and provincial councils

Sgomez Friday, 17 August 2018 04:31 PM

Somebody plz inform president or give him copy news papper.

Premalal Friday, 17 August 2018 09:25 PM

Wake him up first.

senaratne Friday, 17 August 2018 05:03 PM

Mangala samaraweera and Ranil is taking UNP to the cleaners......Surely Mangala is led by some advisers planted by MR family to destroy UNP by the next election. Instead of collecting the looted money from MR and the gang....poor UNPers who voted for this government is punish.

chandu Friday, 17 August 2018 05:06 PM

Next govt will impose another tax on current govt robberies

Citizen Friday, 17 August 2018 05:09 PM

If all the politicians can forgo their salary, allowances and other income for 1 month, a substantial amount of debt of this debt stricken country will be reduced.

Raj Friday, 17 August 2018 06:47 PM

Tomarrow we can see a press conference by GMOA planning for another STRIKE .

Siri Friday, 17 August 2018 09:41 PM

Privatise all lost making state businesses instead of burdening the people. All stare institutions are big burden on the poor public

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Govt. gazettes new revenue proposals

Comments - 29

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

SL on alert on possible genocide allegations by Canada

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

Street food vendor arrested for verbally harassing foreigner

New Visa procedure implemented

April 15 declared a government holiday

Confusion remains if April 15 is a bank holiday

MIRROR CRICKET

TODAY'S HEADLINES