Several exemptions for the income tax levy has been proposed under the Budget proposal for the year 2021.
It has been proposed for agriculture, livestock, and fisheries sectors to be exempted from the income tax.
This tax exemption is proposed for a period of five years, Prime Minister Mahinda Rajapaksa said.
In addition, a 50 percent income tax exemption has proposed for local companies if they register to be listed in the Stock Market before December 31, 2021.
Earnings from both domestic and foreign sources by those engaged in businesses in Information Technology and enabling services and also their earnings, when made while being resident or non-resident, will also be exempted from income taxes.
The Finance Minister, in order to promote investments in the housing market through the Sri Lanka Real Estate Investment Trust (SLREIT) regulated by the Securities and Exchange Commission, proposed to exempt such investments from capital gains tax and dividends free from income tax and to reduce the stamp duty up to 0.75 percent.
The presentation of the budget proposal for the year 2021 is currently underway at the parliamentary session by the Minister of Finance, Prime Minister Mahinda Rajapaksa.
