Cabinet approves reintroduction of Capital Gains Tax
June 15, 2016 02:17 pm
Sri Lanka’s Cabinet of Ministers has approved a proposal to reintroduce the Capital Gains Tax (CGT), to rectify the increase in inequality of income distribution.
“During the last few decades there has been a massive increase in the private capital in the country,” cabinet spokesman and Media Minister Gayantha Karunathilaka said.
The increase in prices of land attributable to the large infrastructure developments carried out through government funds have enabled the land owners to make significant capital gains free of taxation.
This resulted in the increase in the inequality of income distribution, he told reports during the cabinet press briefing today.
“The Cabinet Committee on Economic Management agrees to reintroduce the Capital Gains Tax to rectify the situation and the proposal made by Prime Minister Ranil Wickremesinghe as the Chairman of the Cabinet Committee on Economic Affairs, to draft a new Capital Gain Tax Regime, was approved by the Cabinet of Ministers.”
