At a meeting with business leaders, the Finance Minister has agreed to provide these concessions from the budget these, sources divulged. These specific tax concessions are earmarked for ‘Landmark Investments’ of over USD100 million and up to USD500 million, and investments over USD500 million and above.
While providing top businesses with concessions and tax holidays, the Finance Minister has called upon top 100 companies to make specific investments with the Government at a time funds are insufficient to boost the production and incomes of farmers, fishermen, small enterprise owners and ensure fair wages for plantation and industrial workers, civil society activists alleged.
Lowering of tariffs and tax concessions for the corporate sector and foreign investors becomes the norm, they pointed out.
A 200 percent capital allowance is to be granted for businesses which make investments in the Northern province and 100percent capital allowance for businesses which make investments in the Uva and Eastern provinces of over USD 3 million (excluding land) and generate new employment opportunities for 250 or a 3 or 5 year 50 percent tax holiday will be granted for such businesses which will create 500 or 800 new employment opportunities respectively.
.Any company, both domestic and foreign, with an investment between USD 5 million and USD 100 million (excluding the value of land) that engage in a venture with more than 40 percent value addition and could generate employment for 500 employees, will be provided with a grant of 5 percent of the investment at the end of the 2nd year of operation. If this is maintained for 5 years, government will top up the investment by a further 5 percent on the original investment. We will also grant a 100 percent capital allowance on such investments as well.