Tax relief benefits will reach people within few months…
People will receive benefits from the recent tax concessions within the next two or three months, Inland Revenue Commissioner General Nadun Guruge told a news briefing yesterday. The new caretaker government had announced a heap of tax concessions which included the annulment of Nation Building Tax (NBT), Capital Gain Tax, Withholding Tax and the reduction of VAT to 8 percent from 15.
He said the benefits of the tax reliefs should reach the people from December 1. But according to certain economic theories, the benefits will take considerable time to reach the people. “People should keep in mind about tax reliefs. They should be keen on it when buying things from markets. Eight percent tax was possible to indicate on bills and it cannot be mentioned as ‘relevant taxes inclusive’,” the commissioner said.
The President had promised in his speech at the swearing-in ceremony to rebuild the collapsed economy by simplifying the taxes and giving relief for people, the commissioner said.”There are many types of taxes that should be controlled. People had to pay a lot for taxes. We are also in difficulty in administrating the huge number of taxes. Therefore, it is relevant to simplify them,” he said.”This government reduced direct and indirect taxes to develop the country by improving investments,” the Commissioner added.