Sri Lanka Budget - March 2019

Enterprise Sri Lanka: Empowering the people and nurturing the poor

The Hon. Mangala Samaraweera, Minister of Finance and Mass Media presented the 73rd Budget of the Democratic Socialist Republic of Sri Lanka in Parliament on 5 March 2019.

Budget highlights:

Direct Tax
  • Income tax: An exemption of earnings on sovereign bonds.
  • Witholding tax: Rent payments made to any resident individual not exceeding Rs. 50,000 per month/Rs. 500,000 for a year assessment will be exempt.
Indirect Tax
  • Value Added tax: Exemption on manufacturing cigarettes will be removed.
  • Nation building tax: Special Commodity Levy will be adjusted on the import of palm oil in lieu of NBT applicable on local value addition.
  • Economic service charge: Turnover from the export of goods or services – ESC rate will be reduced to 0.25%.
Miscellaneous Tax
  • Excise Duty under Excise Ordinance: The Excise Duty rate of imported liquor will be revised as follows - Beer: Rs. 55/- per bulk litre; Wine: Rs. 110/- per bulk litre; Others: Rs. 215/- per bulk litre
  • Betting and Gaming Levy: The following revisions have been proposed under the Betting and Gaming Levy Act No.40 of 1988. - Annual levy for carrying on the business of gaming other than playing rudjino - Rs 200 million
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