Press briefing of Cabinet Decision taken on 2022-05-30 |
Revenue Mobilization for Economic Stabilization - The decision made by the Government to reduce tax rates of Value Added Tax, Personnel Income Tax and Corporate Income Tax by introducing a low tax regime in late 2019 and to narrow tax bases of Value Added Tax and Personnel Income Tax has resulted in a significant loss in the Government revenue. Further, the said decision has led to an increase in the budget deficit and public debt as a percentage of the Gross Domestic Product. Under the circumstance, the proposal made by the Hon. Prime Minister in his capacity as the Minister of Finance, Economic Stabilization & National Policies to instruct the Legal Draftsman to amend the following Acts with a view to increasing the Government revenue, was approved by the Cabinet.
• Inland Revenue Act, No. 24 of 2017 • Value Added Tax Act, No. 14 of 2022 • Telecommunication Levy Act, No. 21 of 2011 • Betting and Gaming Levy Act, No. 40 of 1988 • Fiscal Management (Responsibility) Act, No. 3 of 2003 |