Several financial Acts to be revised to increase Govt revenue

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Prime Minister Ranil Wickremesinghe has proposed to amend a number of financial acts to increase the government’s revenue.

Accordingly, the Premier has proposed to amend the Inland Revenue Act, No. 24 of 2017, Value Added Tax Act, No. 14 of 2002, Telecommunication Levy Act, No. 21 of 2011, Betting & Gaming Levy Act, No.40 of 1988 and the Fiscal Management Act, No. 3 of 2003.

The government had decided to introduce a relaxed tax policy in 2019 to reduce the VAT rates, personal income tax, corporate income tax and to shrink the tax base on VAT and income tax. As a result, revenue of the government reduced considerably.

 In order to rectify the issue, Prime Minister Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilization, and National Policies has proposed to amend the five financial Acts.

Accordingly, the Cabinet has approved the said proposal presented by the Prime Minister to instruct the legal Draftsman to prepare the necessary bills to amend the Acts with a view to increasing government revenue.