COLOMBO: Cabinet has approved a proposal to redraft the Inland Revenue Act in order to simplify and modernize it, the Government said today.
According to the Government, the Inland Revenue Act No 10 of 2006 provides legal provisions to impose income tax in Sri Lanka, but it has been complicated due to periodical amendments made to the act since its enactment. Hence, simplification and modernization of the act according to acceptable tax principles that helps in attracting investors has become a timely requirement, it was noted.
Accordingly, Cabinet has approved a proposal made by Finance Minister Ravi Karunanayake to instruct the Legal Draftsman to redraft the Inland Revenue Act according to international standards and improving clarity and transparency as proposed by the Budget 2016.
