The new Inland Revenue bill, which was gazetted on June 16, was tabled in Parliament on July 5.
Once passed by Parliament, this Bill will replace the existing Inland Revenue Act No 10 of 2006. As indicated by the government, the objective of introducing the new Bill is to broaden the existing tax base, rationalize the existing tax structure, and simplify the language and to align the tax rules with international best practice.
It is the view of the Ceylon Chamber of Commerce (CCC) that formulation of tax policy is the prerogative of the government with due consideration for different stakeholder views.
The Ceylon Chamber was engaged in the drafting stages of the Bill and made several representations to the government on behalf of its members and the general tax paying public without compromising the government’s effort of increasing revenue collection.
Some of the key submissions made by the Ceylon Chamber were to maintain the current law relating to taxing dividends, interest, and the business of life insurance, sale of shares in the Colombo Stock Exchange, concessionary rate of tax for thrust industries such as agriculture, education and exports, simplify the capital allowances structure proposed in the new Bill and to maintain the same tax structure.
The CCC is happy to note that most submissions were accepted whilst the Chamber is yet negotiating with government to accept certain provisions to do with the practical implementation of the proposed law.
Finally, it is the view of the Ceylon Chamber that the new Inland Revenue Bill once enacted should be ideally implemented from April 1, 2018, giving a longer transitional period for both the tax payer and the Department of Inland Revenue to become fully conversant with the provisions of the law.
To refer all submissions made by the Ceylon Chamber to the Ministry of Finance during the preparation of the Bill, visit the Ceylon Chamber website (www.chamber.lk) and refer the ‘Submissions to Government’ section.
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