Port City: Gazette on tax concessions presented to House

30 January 2017 04:01 pm - 8 - {{hitsCtrl.values.hits}}

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The Government has presented to Parliament the two gazette notifications which authorises tax concessions to two major projects -- the Port City Project (PCP) at Galle Face and the Mix Development Project (MDP) in Slave Island.

The Gazette notification provides the US$1.3 billion Port City Project a six-year holiday on corporate tax, with the dividends distributed to shareholders being exempted from income tax for 25 years.

The project company is also to be exempted from withholding tax on interest on foreign loans, management and royalty fees payable while such charges should not exceed three per cent of the gross operating revenue.

In addition, expatriate staff of the PCP shall be exempted from PAYE tax as well. The project will be exempted from VAT during the implementation period while the project company contractors will be exempted from construction industry guarantee fund levy.

It will also be exempted from paying CESS for eight years during the implementation.

The Kompannaweediya(Slave Island) Mixed Development Project is also being provided with similar tax concessions.

The two gazette notifications had been presented by Chief Government Whip GayanthaKarunatilake on behalf of Development Strategies Minister Malik Samarawickrama on Friday. (Yohan Perera)

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Comments - 8

Ajith Monday, 30 January 2017 04:19 PM

This is good news. Now all have the opportunity to study in detail and discuss openly in the parliament. Over to JO and JVP to highlight any wrong / inappropriate clause now without shouting later.

Bala Monday, 30 January 2017 04:33 PM

While tax incentives have to be given, I think they should not be exempted from construction industry guarantee fund levy. It is a small amount and will help our own constrution industry's future.

BuffaloaCitizen Monday, 30 January 2017 05:02 PM

During Ali Baba's time, no ministers contested these... they were just required to place their signature of approval like a group of punks. The outcome was Mihin Lanka, MRIA, Hambantata Convention center etc...

Yehiya Monday, 30 January 2017 05:21 PM

Very clear. People like the way.

menna Tuesday, 31 January 2017 08:04 AM

"Slave Island" this word have minus impact. Even it is a place in Sri Lanka authorities may consider naming of places for next generation.

Nihal Amarasekera Tuesday, 31 January 2017 09:28 AM

Here we go for everybody to hear!

Nihan Tuesday, 31 January 2017 04:23 PM

Outcome was an economic growth of 7% .

Lara Tuesday, 31 January 2017 04:25 PM

I thought they promised to cancel the port city project not grant further tax concessions.

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Port City: Gazette on tax concessions presented to House

Comments - 8

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