Act on National Building Tax to be amended

The Nation Building Tax (NBT) Act is to be amended in order to facilitate the implementation of certain proposals as set out in the budget for this year.

According to this year’s budget, the NBT imposed on foreign currency receipts by hotels registered under the Sri Lanka Tourism Development Authority (SLTDA) would be removed.

The tax imposed on tour operators and travel agencies would also be adjusted to resolve anomalies between both industries.

Meanwhile, the NBT imposed on the main contractor of a construction project would also be removed in a bid to reduce infrastructure expenditure.

Lapidary service providers registered under the National Gem and Jewellery Authority would also be exempted from tax over the import of unprocessed gemstones for re-exporting purposes.

The amendment would also see cigarette manufactures being liable to the tax, while NBT would also be imposed on foreign payments using debit or credit cards.

These changes were expected to come into effect on June 1.

However, cabinet approval had been granted only yesterday to gazette the amendments to the NBT Act in order to submit it to Parliament for approval.