The Board of Investment (BOI) will no longer grant tax exemptions to investors, Prime Minister Ranil Wickremesinghe said.
There are two agencies granting tax exemptions - the Department of Inland Revenue in the Finance Ministry and the BOI. Only ministries will be authorised to grant tax exemptions from today. Only two institutions responsible for collecting state revenue will be authorised to provide tax exemptions. The Finance Minister is the one who is answerable to Parliament,” he said.
Speaking about the government revenue generation, he said the government was aiming at increasing tax revenue to 20 percent of Gross Domestic Production (GDP).
“Currently it is at 12 percent and we need to change this and increase it to at least 15 percent like in India. Since our knowledge on tax revenue generation is low, a special IMF team will arrive in the island to advice on how to increase the tax revenue,” the Prime Minister said.