In order to promote the agricultural production in the country for exports and consumption purposes the government has decided to provide 5 year tax exemption to the agricultural based small and medium industry.
In addition the annual income tax rate on processing industries using local agricultural commodities is to be reduced from 28 per cent to 14 per cent, the Ministry of Finance and Economic Affairs said.
Further, as measure to ease the serious hardships to small holder business operations, it is proposed to raise the threshold for the application of ESC Economic Service Charge from Rs. 12.5 million per quarter to Rs.50 million per quarter.
These relief measures have been taken on the instruction of the President and the Minister of Finance and Economic Affairs and are aimed at providing highest priority to agricultural development, the statement said.
Accordingly the government is of the view that every effort should be made to make use of the 2018 /19 Maha cultivation season as a new beginning.
Therefore, Agricultural income generated specially by the small scale entrepreneurs in the cultivation of any agricultural produce such as tea, spices, coconut, rubber, paddy, fruits, vegetables, etc, is to be exempted from income taxation for a period of 5 years.
Statement by Ministry of Fi... by on Scribd
