Cabinet approves tax amendments proposed by the budget

Colombo (News 1st): The Finance Ministry said Cabinet granted approval for a number of tax amendments proposed by the budget. Accordingly, under these amendments hotels, guesthouses, restaurants registered with the Tourist Board who receive payment in foreign currency through local commercial banks, such money will be exempted from Nation Building Tax. At the same time, import of yachts and other vessels for pleasure or sports purposes will also be exempted from Nation Building Tax. The exemption of NBT presently available for subcontractors in the construction industry sector will be made available to the main contractors too. In addition, this tax concession will be given to the importers of unprocessed gems as well as for palm oil manufactured locally out of imported crude palm oil. The VAT will not be charged from such housing projects which sell housing units that are sold not exceeding Rs.25 million each. In addition, the locally produced Rice Bran oil manufactured out of locally produced red rice will also be exempted from VAT. At the same time, as proposed by the Budget 2019, the existing VAT of Rs.75 per item of garments sold locally by BOI approved apparel companies has been increased to Rs.100 per item. All amendments will be presented to parliament in September 2019 for ratification.