Govt. to charge tax on capital gains soon: PM

Published : 9:00 am  June 10, 2016 | No comments so far |  |  (664) reads | 

Untitled-3 By Yohan Perera and Kelum Bandara
Government will soon introduce capital gain tax, which will be levied from companies, Prime Minister Ranil Wickremesinghe told Parliament yesterday.
 “We will tax the rich companies soon,” he said speaking during the debate on the no confidence motion against the Minister of Finance, Ravi Karunanayake last morning.
 He first announced the imposition of tax on capital gains in March this year, when he presented revised taxes to the Parliament. However, a timeline for the implementation of capital gains tax was not mentioned.
 Also, Wickremesinghe yesterday said the government would enact legislation by the end of this year to do away with exchange controls.
 He said the government had signed agreements this year so far to raise US $ 9 billion in terms of external borrowings.
 He said it included US $ 1.5 billion to be raised from the International Monetary Fund (IMF) and another US $ 1.5 billion from China.   In addition to that he said the government would be able to raise another US $ 4 billion through Japan’s Samurai bonds and development bonds directly, as a result of President Maithripala Sirisena’s visit to that country.
 “President Maithripala Sirisena had managed to secure financial assistance from Japan during his recent visit,” Wickremesinghe averred.
 As a result of the higher inflows, he stressed, the government would be able to have exchange control stability.

 “We feel certain and confident about it. Then, we will open out the exchange control,” he said.
 Government has already announced plans to repeal the incumbent Exchange Control Act and introduce a Foreign Exchange Management Act. 
 Further, he said a forensic audit carried out by Treasury officials with IMF support has revealed liabilities running into approximately Rs.1.3 trillion during the end of this year.