The Cabinet of Ministers this week approved a proposal to empower 25,000 young female entrepreneurs in Samurdhi beneficiary households by initiating a new programme under ‘home-shop’ concept with a view to strengthen the local food distribution network.
On Monday, Minister of Highways, Johnston Fernando sought the approval for the programme from the Cabinet of Ministers, which is to be implemented in parallel to the 100,000-kilometre highway development programme.
In addition, the 28 percent corporate income tax rate on financial service providers in trading, banking, finance and insurance sectors is also proposed to be brought down to 24 percent from the current 28 percent.
However, the Minister noted that the government would be maintaining 40 percent corporate tax rate on sin industries— betting & gaming, liquor, and tobacco. Furthermore, the budget proposals on personal income taxes are also included in the bill.
The Minister revealed that the gazette notification would be issued with effect January 1, 2021.
The Ministry of Finance plans to complete the legislation process of all tax proposals presented in the Budget 2021 including special goods and services tax (GST) as well as the one percent tax rate on previously undisclosed funds, when the new tax year begins in April.
In particular, the ministry emphasized on the implementation of the proposed GST covering five items including vehicles, cigarettes and alcohol as well as granting amnesty for people who bring in earlier undisclosed funds subject one percent tax.
The bill is expected to be published on the government gazette shortly, before being tabled in Parliament for lawmakers’ approval.
The government expects to maintain the new tax framework, which aims for a simple, transparent and an effective tax system in force for its five-year term.