IRD to provide tax consultancy services free of charge
Provincial offices of Inland Revenue Department (IRD) will
essentially be converted into a tax advisory centres with a view to
encourage self tax compliance in an effective manner, said Treasure
Secretary Dr P.B Jayasundara.
Dr P B Jayasundara
These centres will provide tax consultancy services free of charge
and IRD officials will provide a competent and professional tax
constancy service to those who require credible and decent information
on various tax initiatives.
As far as taxation is concerned, the government went ahead with the
implementation of Value Added Tax (VAT) and Nation Building Tax( NBT )at
retail and wholesale level where wholesale and retail level transactions
are defined for Rs 500 million or above a quarter.
Inland Revenue Department has organized its own logistics and
operational arrangements to ensure that retail level VAT is fully
operational in the country at the highest organized level of trading
business. Dr.Jayasundara said that the government has also exempted
payments of VAT for businesses operating below Rs 12 million per annum.
Construction, Tourism, Exports and SMEs are liable to pay only 12 %
or less of their profit and we hope that everybody is voluntarily
expected to come into the system.
In addition persons earning over 50,000 to 100,000 per month will
have to pay 2 % income tax.
We hope that the tax system will become more buoyant with the economy
bouncing back to 7.5% GDP growth, he said.