The proposed new Inland Revenue Act which is expected to remove ‘ad-hoc and unproductive tax concessions’ will propose that income tax incentives be based on the “investment made on the capital assets, employment generation and the area in which the investor invests”.
These incentives in future will also be only dealt under the Inland Revenue Law.
The government stressed that this would “broaden the income tax base by removing excessive tax incentives/expenditures and thereby raise government revenue”.
The proposal made for the above by Finance Minister Ravi Karunanayake was granted Cabinet approval on Tuesday.
In accordance with Budget 2017, the government is presently is drafting a new Inland Revenue Act and the Finance Minister also sought cabinet approval for an incentive scheme for Small and Medium investors who invest between 2017-2017 to be included in the new Inland Revenue Act.
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