The Cabinet of Ministers has approved the proposed amendments to a range of tax laws in order to give effect to the tax policy of the current government by law.
Accordingly, the Cabinet of Ministers this week approved a proposal presented by Prime Minister Mahinda Rajapaksa, who is also the Finance Minister, to direct the Legal Draftsman to formulate the drafts revising the Inland Revenue Act No. 24 of 2017 and Value Added Tax Act No. 14 of 2002.Further, the Cabinet of Ministers also gave clearance to the Legal Draftsman to table draft bills revising Nation Building Tax Act No. 09 of 2009, Economic Services Fees Act No. 13 of 2006, Ports and Aviation Development Tax Act No. 18 of 2011 and Financial Act No. 35 of 2018 in Parliament, after publishing them in the government’s gazette notification.
President Gotabaya Rajapaksa cut a range of taxes while abolishing certain taxes such as Economic Service Charge (ESC) in December, in order to stimulate the economy.
Most of the changes to the taxation structure are already in place, with the country’s tax agencies having already issued instructions to implement the changes, based on a Cabinet decision late last year.