News

Tax hike from May 1

The Nation Building Tax will be increased from one per cent to three per cent from May 1. This tax is imposed largely on businesses liable to value added tax (VAT).

This tax which was announced by President Mahinda Rajapaksa in his Budget speech last November and is applicable on the turnover on imports, manufacturing and services other than on the banking and financial sector for two years.

The President proposed the tax as a social contribution towards the welfare of the security forces and to rebuild communities and infrastructure facilities affected by terrorism.

Along with the increase in the Nation Building tax, several other taxes too are slated to increase with government revenues nose-diving due to the global recession.

“Government revenue growth declined from almost 25% in the beginning of 2008 to less than 5% by the fourth quarter of 2008,” Central Bank Director Nandalal Weerasinghe told a public lecture on Wednesday.

“Any further deceleration in economic activities during the year would adversely affect the expected revenue collection in 2009. So new revenue measures are being implemented,” he said. As the economy is expected to decelerate to 2.5% to 3% this year, new revenue measures were already on the way, he said.

Import taxes on many items were raised repeatedly from end of last year to now and the business turnover tax is to be increased from May.

 
Top to the page  |  E-mail  |  views[1]
 
Other News Articles
Treasury doles out more money to ministries
Puerto Rico parasite for battle against piti makuna
Tax hike from May 1
TNA leaders to meet Menon
Uncollected Colombo garbage gets in the way of festivities
Market spoiling Avurudhu mood
High-level team to probe alleged malpractice at Dambulla Economic Trade Centre
Tax bailout package for state institutions
Lanka-based Indonesians cast their votes
TNA to contest Northern Province polls
Polls violence: Police yet to arrest two MPs
UPFA candidate’s gunfire injures bystander
Wijeya Newspapers employee and daughter killed in accident
Church attack : Baptism, marriage records stolen
Bus strike suspended after talks
Final battle in the midst of civilians
Sulphuric ship sinks but Lanka faces acid test
UNESCO prize honours slain journalist
New Year auspicious times and colours
Govt. silent on US plan for rebels’ surrender
Auditor-General highlights grey areas in President’s Fund financial statements
Thunderstorms forecast
Peace and unity for New Year: President
People imprisoned in huge debt-trap: Ranil
Peace for all in President’s Easter message
Polls violence: Double trouble ahead
Cooray says war hoorays a legitimate campaign weapon
Motorcycling JVP member deplores use of war in politics
UNP will set up PC fund to help troops
Insurance scams and innocent housemaids
The bug invasion
H L De Silva PC: The last of the ‘Greats’
Labour’s pains are self-inflicted

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution