TAX NEWS - JUNE 2010

Sri Lanka Tax: Sri Lanka slashes import tax to boost revenue

02 June 2010, COLOMBO -- Sri Lanka slashed tax on imports and simplified its tax system, officials said on Tuesday, to widen the country's tax structure and boost revenue, which may help to cut its budget deficit and continue an IMF loan.

The changes in Sri Lanka tax structure are implemented with immediate effect. The change in Sri Lanka tax rates and tax structure come as the $42 billion economy hopes to achieve 6.5 percent growth this year, while trying to cut its budget deficit from a nine-year high, a main concern raised by the IMF to continue a $2.6 billion loan.

The "customs duty structure has been simplified with a four band duty structure of 0, 5, 15, and 30 percent," the Ministry of Finance of Sri Lanka said in a statement.