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Laws passed, but delay in collecting new taxes
View(s):Attempts to expedite collection of outstanding taxes based on six new Finance Acts have been stalled with the Finance Ministry yet to inform the Inland Revenue Department on the dates the taxes will come into effect, officials said.
So far instructions have been issued only regarding the collection of the Migration Tax, according to which a person permanently migrating has to pay as tax 20 per cent of the foreign exchange released to be taken out of the country. This tax had been made effective from November 1, an Inland Revenue Department official said.
However, initially the tax was due to come into effect from April 1, but due to complication of collecting the taxes from persons who have already migrated the effective date had been adjusted. The department also has received instructions that if persons have already permanently migrated but were yet to take away part of the funds left behind, they should be given a concession and not be required to pay the tax.
Speaker Karu Jayasuriya last month endorsed the finance bills and the department was due to start collecting the taxes from November 1.Among the taxes and levies which have come into effect are the mansion tax, the mobile telephone operator levy, the direct-to-home satellite services levy, the bars and taverns levy, the casino industry levy, the super gains tax, the dedicated sports channel levy and the motor vehicles importer licence levy.
The taxes were due to come into effect with retrospective effect with some of them as far back as on April 1. However, with the delay in implementation of the taxes and levies the collection of the amount proposed in the interim budget in January this year will be further delayed.