Concerns on IR bill addressed

• Mangala ready to present amendments for half a day
• Proposed tax on share trading to be addressed 

The Finance Ministry yesterday said that most of the concerns raised about the proposed Inland Revenue Bill have been addressed through amendments to be presented in Parliament next week. 

“Many of the concerns from the private sector have been addressed. There are a lot of amendments which we are hoping to present to Parliament,” Finance Minister Mangala Samaraweera told reporters at a press conference held at the Finance Ministry. 

The ministry is planning to present the amendments in Parliament on 25 August, Samaraweera revealed. 

“We have about half a day of amendments.” 

State Minister for Finance Eran Wickramaratne assured that amendments have been brought to the bill to ensure compliance with the Supreme Court’s directives which were “largely administrative”. 

Concerns over a proposed tax on share trading will also be addressed, Wickremaratne told reporters. 

“We know there is an issue with the trading stocks. It will be taken care of. Nothing will be done to damage the market,” he assured. 

Wickremaratne also said the new timelines given for the appeal process had also been revised. 

“We have taken into account all the lobbying and concerns raised when the amendments were made. The chances are everybody has been heard,” he said. 

A Reuters report said that the country’s main share index .CSE has shed 3.9% since 27 July and declined in 14 out of the past 15 sessions due to a fall in June quarter profit and speculation that the new tax reform bill will impose a 28% tax on trading stocks.

At present, trading of shares on the Colombo Stock Exchange is subject to only a transaction levy of 1.12% and there is no tax on the profit made. Quoting market analysts, Reuters reported that the new bill would impose a 28% tax on trading stocks, defined under the bill as shares which will be sold within a short period.