Jun 24, 2017

New Act to increase taxes in parliament next month Featured

Under the new domestic Income Tax Act scheduled to be presented to parliament in the first week of July, it is proposed to increase the tax rates which will affect many fields, it is reported.

Accordingly, the 10% tax imposed on the agricultural sector is expected to be increased to 14%.

In addition the current tax of 10% imposed on EPF investments is expected to be increased to 14%, the 10% tax on imports will be increased to 14%, and the 12% tax on the hotel trade is to be increased to 14%.

It is also reported that the taxation rates charged from the banking trade, insurance and leasing trade  will be 28%.

Further the IT trade, production export and container re-export trade which was so far exempt from taxation will be subject to a tax of 14%.

This new taxation scheme is being introduced to the country based on recommendations of the IMF to increase domestic revenue and simplify the taxation process.

These new taxations are expected to be implemented from October this year.