Finance Minister rejects VAT on Central Cultural Fund

by Chamikara Weerasinghe

A proposal by the former Commissioner of Value Added Tax (VAT) to impose VAT upon earnings of the Central Cultural Fund had been shot down recently with Finance Minister Dr. Sarath Amunugama who vehemently rejected it, the Daily News reliably learns.

Finance Director of the Central Cultural Fund Jimmy Amaraweera confessed yesterday that the Finance Minister had saved a lot of trouble for the Central Cultural Fund by opposing the proposition of the VAT Commissioner. Thanking the Miinister, Amaraweera pointed out that the Central Cultural Fund's income had been dependent more or less on foreigners who come to visit world heritage sites in Sri Lanka such as Sigiriya, Polonnaruwa, Anuradhapura, Kandy, Galle and Dambulla, who buy tickets issued by the Fund as an aid to maintain them.

"Thus the Central Cultural Fund is being managed on a contributory income that is dependent at the same time on the influx of foreigners to the country," he explained. Central Cultural Fund's Finance Director Amaraweera said he could not believe at first when he heard about the proposed plan to impose a tax on the Fund.

"It has always remained an institute free of taxes since its establishment in 1980," he said.

Moreover, the Fund has about 3,000 employees whose salaries had to be paid from its income.

The Treasury paid Rs. 50 million last month following a request by the Fund to meet its basic requirements, he added.