IR Act curtails powers vested in ministers to grant tax concessions – Mangala

Minister of Finance and Media Mangala Samaraweera stated that the new Inland Revenue Act is drafted as a transparent tax policy beneficial for both local and foreign parties, doing away with several tax concessions provided to political allies of the previous regime through the Strategic Development Act.  

The Minister of Finance made these comments in response to MP Bandula Gunawardena, who stated that the new IR Act is weighted in favour of foreigners and is detrimental to local investors. He stated that MP Bandula Gunawardena should refrain from blindly following the sentiments of Former President Mahinda Rajapaksa, who is acting as any political opportunist aspiring to gain power would.  

Minister Samaraweera shed light on the fact that the Rajapaksa regime had granted various concessions and tax holidays, to loyalists and supporters utilizing the provisions of the Strategic Development Act. He further stated that, the Rajapaksa government manipulated the tax system in such a way that 10% of the country enjoyed 54% of the nations’ economic benefit. 

He further went on to state that the newly introduced IR Act includes a transparent policy of tax concessions clearly defining the availability of concessions to any investor. He also stated that an investor will be thoroughly informed of the concessions liable to them. The Minister stated that these policies were implemented to rid the country of an era where investors had to beg politicians for tax concessions.   

The Minister of Finance also stated that the former President is against the new IR Act as it takes away the political authority for certain political individuals to grant tax concessions creating a more open market in Sri Lanka. He also mentioned that to ensure lucidity, the introduction of the Act will negate all discretionary powers vested in the Minister of Finance to grant tax concessions.