Daily NEWS Srilanka

New types of proposals and some decisions regarding taxes are to be forwarded at the first budget speech of the Minister of Finance Mangala Samaraweera which is expected to be presented in another few more weeks, news sources reveal.

It is a matter of special significance that concessions are to be allowed in relation to taxes which topic was subjected to much talk. It is understood that small vehicles (engine capacity 800 cc.) and electric motor vehicles would be free of taxes and as a result, the cost of those vehicles would drop on a big

In the meantime Minister John Amaratunga has mentioned in parliament sometime ago that deaths occuring everywhere within the country because of prices of alcohol of a standard criterion is expensive and also because of the below the standard criterion. Minister John expressed last week that following on those lines the Finance Ministry has understood what he had suggested about  relaxing the present laws in existence in relation to selling wine and beer referring to the proposal he has brought forward in that connection. He has further mentioned that though wine and beer could be purchased from any shop in any country in the world where tourists frequent on a large scale, it is only Sri Lanka which issues a license in that respect and that laws would be amended where wine and beer could be purchased from any shop in Sri Lanka.

Whatever it is, though many proposals have been brought forward by the budget this time; the most dangerous decision which affects most people directly is the Income Tax Act which is expected to be implemented from April 1st 2018. So far no government has taken steps to give an income tax number to each individual and thus regulate all institutions by recording their assets earned and related transactions as developed countries do and thus impose taxes on each individual resulting in netting a large number of people evading taxes.

According to this set up, any person who earns a monthly income (from all earnings) of over Rs. 41666 is expected to pay a tax to the government. An institution drawing a per capita income and also individuals too are exempted from taxes upto 5 lakhs from their annual profit while any profits earned above it are taxed 4% upto 6 lakhs and 8% upto the next 6 lakhs. The tax percentage of 4% would be levied for increase on every part of 6 lakhs thereby.

Whatever it is, when enforcing these taxes some concession would be allowed in the case of artistes, the government informed recently. For those engaged in the field of Arts, tax concessions of a special nature plus recess would be provided.