SriLankan pilots to get tax incentive

The Government has reduced the income tax rates on employment income of SriLankan pilots with immediate effect.

Pilots will not be subject to pay a maximum of 20 per cent in the future for their employment income.

The new amendment came as per the committee stage report of recent Income Tax (Amended) Bill.

The tax proposal was not made under the budget proposal of 2008 and was not included in the Inland Revenue (Amendment) bill issued of January 28, 2008.

The bill says that any citizen of Sri Lanka for any year of assessment commencing on or after April 1, 2008, as consists of his profit from employment as a Pilot of any airline shall be charged at the rate of maximum of 20 per cent.

According to the earlier rules SriLankan pilots were charged a maximum of 35 per cent tax depending on the amount. The first Rs. 300,000 was tax free, the second Rs. 300,000 charged five per cent tax.

The third Rs. 200,000 was charged 10 to 20 per cent tax and above that it went up to maximum of 35 per cent.

The Government has given this tax concession to retain the services of Sri Lankan pilots who are planning to leave the national carrier.

The number of flying hours for SriLankan pilots were also increased up to 100 by the Government recently.