COLOMBO: The government has proposed to establish a special Tax Appeals Court under the budget proposal for the financial year 2021.
This will facilitate the resolution of tax appeals without delays, the Minister of Finance, Prime Minister Mahinda Rajapaksa said.
He commenced delivering the budget speech at the Parliament at 1.40 pm Tuesday November 17.
A sum of Rs 750 million has been allocated through the 2021 Budget proposal for the welfare of disabled, retired veterans and families of the soldiers who died on the line of duty.
These funds aim to cover the facilities and programs carried out by the Ranaviru Seva Authority such as proving prosthetics and support equipment for disabled soldiers, housing loans, educational and vocational development programs, and medical aid.
Prime Minister Mahinda Rajapaksa mentioned this during the budget speech for the year 2021, currently underway at the parliament.
The other features in the budget include
- A 50% income tax exemption to local companies if they register before 31 December 2021 to be listed in the Stock Market
- Five technological parks across the country to be established.
- Additional funds of Rs. 3,000 million to initiate a scholarship programme to provide a Rs. 4,000 monthly allowance to students receiving vocational education based on their active participation.
- Foreign loans 1,400 million USD to be obtained for the next five years from the Japan International Cooperation Agency, World Bank and Asian Development Bank.
- A 50% tax exemption offered for local Companies listed in the Colombo Stock Exchange until December 31, 2021.
- Television sets to be provided for rural schools to allow students to watch Guru Gedara educational programmes. Rs 3,000 million allocated
- A new insurance scheme will be introduced for the employees of Covid affected sectors.
- Rs 750 million to be allocated for housing, health, education and entrepreneurship needs of retired, injured or deceased military servants.
- Tax on dividends of foreign companies will be excempted for three years, if the money is invested in Sri Lankan sovereign bonds or in the stock market
- New laws to be introduced in relation to data security, cyber security and intellectual property.
- A special Court of Appeal to hear public complaints pertaining to tax.
- Rs 8 billion to be allocated for the expansion of the technology sector
- Special programmes will be conducted to strengthen public security at a cost of Rs 2,500 million
- Non-residents will be allowed to purchase super-luxury condominiums using foreign currency
- Value Added Taxes unchanged at 8% for businesses that record a turnover of more than 25 million a month except for bank,finance and insurance companies
- New laws against auditors and companies that prepare false tax records
- Simple Online Income tax system to be introduced for income tax payers.
- Business organizations engaged in agriculture, fisheries, and livestock farming industries will be exempted from taxes during the next 5 years
- Special Goods and Services Tax to be introduced for telecommunication,alcohol, cigarettes, vehicles and betting.
- Expecting to maintain a 6% growth rate, Inflation at around 5%, budget deficit to be reduced for 4%.
- “We have entered an era in which Sri Lanka’s geopolitical importance is highly valued and we need to utilize it while sustaining sovereignty. We need a strategic vision for that” Prime Minister said .