News
Seven bills to raise revenue through mega taxes
Finance Minister Ravi Karunanayaka has reintroduced the Finance Act (Amendment) Bill which seeks to impose the Mansion Tax and Migration Tax and the Super Gains Tax on a company or individual whose profit before tax exceeds Rs. 2,000 million.
This and six other bills aimed at raising state revenue were presented to Parliament by the Finance Minister this week amid opposition protests.
The bill was earlier presented in parliament consequent to the interim budget in January. The amendment to the Finance Act provides for the imposition of Bars and Taverns Levy, Casino Industry Levy, Super Gains Tax, Mobile Telephone Operator Levy, Direct-to-Home Satellite Services Levy, Satellite Location Levy, Dedicated Sports Channel Levy, Mansion Tax, Migrating Tax and the Motor Vehicles Importer Licence Fee.
The Direct-to-Home Satellite service levy of Rs 1,000 milllion will be imposed on every person in the business of providing Direct-to-Home services through satellite having more than 50,000 subscribers in Sri Lanka. The Migrating Tax will be charged from any citizen of Sri Lanka who permanently leaves Sri Lanka, at the rate of 20% of the foreign exchange released to be taken out of the country by such citizens.
This tax will be collected by the Controller of Exchange at the point of outward remittance of foreign currency, in accordance with the provisions of the directions and regulations made under the Exchange Control Act, and the money will be remitted to the Consolidated Fund within 15 days from the date of collection.
The Mansion tax will be imposed on every owner of a mansion constructed on or after April 1, 2000, at the rate of Rs 1 million per year, in addition to the rates and taxes charged and levied by any local authority, and shall be paid in four equal installments.
A Mansion has been described as “any building constructed on or after April 1, 2000, for residential purposes, of which the floor area is not less than 10,000 square feet as per the building plan approved by the local authority of the local authority area wherein such building is situated, or the value of such building, as at the first day of April of any relevant year, is not less than Rs 150 million, as determined by the Government Chief Valuer, or by an officer authorized by him, after making any adjustment as may be prescribed, and in the case of a condominium property , a condominium unit of such property shall be deemed to be a building for the purposes of part.
The other Bills presented by the Minister were the Inland Revenue (Amendment) Bill, Value Added Tax (Amendment) Bill , Nation Building Tax (Amendment) Bill, Economic Service Charge (Amendment) Bill, Telecommunication Levy (Amendment) Bill and the Betting and Gaming Levy (Amendment)Bill.