Annual Report 2008 - Ministry of Finance and Planning

4. Reform Initiatives
177
Finance/Revenue/Commercial Law Related Statutes (2008)
Stamp Duty (Special Provisions)
(Amendment) Act No. 10 of 2008
Economic Service Charge (Amendment)
Act No. 11 of 2008
Regional Infrastructure Development
Levy (Amendment) Act No.12 of 2008
Strategic Development Projects Act No.
14 of 2008
Value Added Tax (Amendment) Act No.
15 of 2008
An Act to enable the payment of stamp duty on leases and mortgages of
immovable property so that either the receipt of such payment or stamps could
be affixed on the lease or mortgage instrument.
To increase the ESC rate on the sale of liquor and motor vehicles from 0.5 to 1
per cent and charges payable by an export business on any export income, to be
subject to a maximum of 0.25 per cent.
The rates applicable to be increased by 2.5 per cent .
An Act to provide for the grant of time bound tax concessions to identified
strategic development projects.
An Act to provide VAT exemptions for the supply of goods and services by
Cooperative Societies, supply of goods and services required for projects identified
under the Strategic Development Projects Act and goods and services required
for special projects identified by the Minister as essential for the development of
the economy ( the service providers of such projects to be eligible to get input
tax credit) where the VAT is payable by the Government, milk products made
out of milk produced in Sri Lanka, products made out of rice produced in Sri
Lanka, domestically supplied prawns, health care services by any medical
institution which has entered into an agreement under the BOI Law on or after
01/01/2001 where the total cost of the project is not less than Rs. 10 Mn. (effective
01/01/2008), locally manufactured chemical Naphtha (effective 17/07/2007),
locally manufactured clay roof tiles, locally produced unprocessed vegetables
and fruits, unprocessed fish and importation of rattan (effective 01/07/2007),
plant and machinery imported for business purposes by enterprises qualified for
a tax holiday under the ‘Nagenahira Udanaya’ program, importation of yarn for
the textile industry (effective 01/01/2008), import of air craft engines or air craft
parts( effective 17/07/2007).
Reduction of the VAT rate from 15 to 5 percent on the importation and supply of
petroleum, imported electric filaments or discharge lamps and arc lamp carbon
for the domestic film industry (effective 01/01/2008), imported canned fish,
chickpeas and green gram (effective 05/06/2007).
Deferment facility availed for the importation of plant and equipment used for
long term development projects to be extended until project completion, with
the approval of Minister (effective 7/07/2007).
Environment Conservation Levy Act No.
26 of 2008
An Act to provide for the imposition of an environmental conservation levy
on certain items owned by consumers, specified items imported into or
manufactured in Sri Lanka or specified services provided in Sri Lanka, likely to
harm the environment.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008