TDL won’t go to Treasury: SLTPB

Tuesday, 16 October 2018 00:28 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Upon reaching a settlement between industry stakeholders and the Finance Ministry, the Tourism Development Levy (TDL) will not be absorbed into a Consolidated Fund, the Sri Lanka Tourism Promotion Bureau (SLTPB) said yesterday.

“There was a proposal to absorb the TDL into the Consolidated Fund of the Treasury and using it for tourism promotion on a case-by-case basis. However, after industry leaders discussed the matter with Treasury officials, they agreed not to put it through,” SLTPB Managing Director Sutheash Balasubramanium told Daily FT.

The Hotels Association of Sri Lanka (THASL) President Sanath Ukwatte also verified that the 1% TDL collected by the industry would not go into a Consolidated Fund.

“The 1% TDL collecting authority, the Sri Lanka Tourism Development Authority (SLTDA), has given us an assurance that the current system will remain and there is no plan to take it to a Consolidated Fund in the Treasury,” he said.

However, Ukwatte pointed out that there was a new proposal by the Government to tax 0.5% TDL for the informal sector, which would be taken into a Consolidated Fund.

“After much lobbying, the Government has shown willingness to reduce tax for the informal sector. The authorities are planning to impose a 0.5% fresh TDL on unregistered tourism entities,” he added.

Noting that they were content with Government’s decision to bring in the informal sector to the tax net as well, Ukwatte said they were concerned as to why it was taken into a new Consolidated Fund, and not to SLTDA — the collecting authority.

“To implement this new TDL on the informal sector, a lot of paperwork needs to be done. New laws need to be introduced, it needs Parliament approval, and to be gazetted. However, we are following up on this new development very closely,” he stated.