News
Tax only on mansions built after April 2000
View(s):The Mansion Tax of Rs one million a year introduced in the interim budget would apply only for residential constructions after April 1, 2000 and those exceeding 10,000 square feet, the government has decided.
According to the gazette the value of the building should be not less than Rs 150 million as determined by the Government Chief valuer or an authorised agent.
The Manision Tax will apply to condominium property as well.
Soon after the tax was announced there was confusion as to how the tax would be imposed and whether it would apply to old ancestral houses.
The Finance Ministry also has gazetted several other taxes as announced in the interim budget.
The taxes are; Bars and Taverns Levy – Rs 250,000 per licence, Casino Industry levy – Rs 1,000 million, Super Gain tax – 25 per cent – on companies or any individual whose profit before income tax exceeds Rs 2,000 million, Mobile Telephone Operator Levy – Rs 250 million, Direct Home Satellite Services Levy – Rs 1,000 million, Satellite Location Levy – Rs 1,000 million, Dedicated Sports Channel Levy – Rs 1,000 million, Migrating tax – any citizen who permanently leaves Sri Lanka to pay a tax at the rate of 25 per cent on the foreign exchange released to be taken out of the country and Motor Vehicle importers License Fee – Rs 1.5 million an annum.
The taxes came into effect from April 1.