Ceylon Chamber suggests amendments to proposed Land bill in the ‘national interest’
View(s):The Ceylon Chamber of Commerce (CCC) has suggested amendments to the proposed Land Bill due to be presented in Parliament next week.
In a statement the CCC said it appreciates the fact that land is an extremely scarce resource, especially in a small island such as Sri Lanka and it needs to be prudently and productively utilised for the overall well-being and benefit of the nation.
While recognising that the government has the duty and prerogative to bring about prudent legislation to address concerns, if any, and when appropriate, it said equally important is that such legislation is coherent and consistent with other national objectives which in this instance are growth in the economy and enhancement of investment, trade and commerce.
“Having deliberated on the matter at length, especially with regard to attracting Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), vibrancy of the stock market and above all improving the ease of doing business ranking – a prerequisite to attracting quality investment to the country – the CCC has made its representations to the government and more specifically to the Ministry of Finance and Planning.
The CCC sincerely believes that the authorities concerned would take cognizance of these concerns and bring about balanced and appropriate amendments in the national interest,” the statement to the media said.
The salient aspects that were highlighted by the CCC as concerns are;
=To use the definition in the Inland Revenue Act to define the status of a company registered in Sri Lanka; i.e. whether it is foreign or resident and not base such determination on the level of foreign equity.
Alternatively, exempting BOI companies with a minimum investment threshold and PLCs from the application of this Bill, which will encourage listing of companies, attract FDI and FII and result in a buoyant stock market with positive benefits to the economy.
- Reducing the Land Lease Tax to 5 per cent, if the desire is to collect the tax upfront, with indenture of the lease. Alternatively, such tax at the presently stipulated rate may be levied, if collected annually, rather than upfront.
- Exclusion of short-term leases /rentals (say upto 10 years) from the application of the Bill.
- Making the Bill prospective, avoiding any implications to business decisions that may have been already made based on the existing policy and administrative framework. In the same tenor, making the Bill retrospective would also be seen as a “lack of consistency” in government policy, by investors, which in turn would create vulnerability and impact the ease of doing business rank.
- Formulating prudent administrative mechanism/procedures to efficiently and effectively deal with registration and monitoring of lease and purchase of property.