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Budget proposals effective Jan.1, shelved as Fin.Min. not ready
Several 2017 Budget tax proposals intended to take effect from today are still not ready for implementation, an official said.
Fiscal Policy Director General A.K. Seneviratne said levies proposed in the 2017 Budget will be implemented only after the return of the Finance Minister who is overseas and only after an assurance that they conform to the Finance Act.
He said the only proposal that will be implemented from today is the US$ 50 embarkation fee at the airport.
Meanwhile, the Financial Transaction Levy (FTL) of Rs 5 on all bank transactions has also been put off.
Hatton National Bank Chief Operating Officer Dilshan Rodrigo said they have not received any communication from the Finance Ministry or the Department of Inland Revenue, and until they do so, there will be no charge.
The Registrar of Motor Vehicles, Commissioner General of Motor Traffic Dept also said that the introduction of the Carbon Tax on fuel run motor vehicles will have to wait, as no decision has been made on its implementation.
The Excise Dept too said the increase in tax on potable alcohol from Rs 500 to Rs 800 and a tax of Rs 25 per litre on non-potable and on imported liquour, and Rs 10-Rs 15 on a beer can, will not take effect on Jan.1, 2017. Meanwhile there is hope for those buying vehicles on lease. The ceiling on loans of 25% on motorcars, 50% on vans and 90% on commercial vehicles, will not be implemented immediately.
The Sunday Times learns that the Value Added Tax on precious metal has been scrapped. Bullion Exchange, Accountant, Rumy Mohideen said the tax is disastrous and will ruin the industry.
The proposal was effected on Nov.1, 2016, but removed on Nov.21, 2016.
“We had a discussion with Finance Minister, Ravi Karunanayke, and he agreed to take it out,” he said.