Uncertainty in residential condo VAT imposition keeps industry guessing
An issue the potential buyers are facing at the moment is the uncertainty with regards to the Value-added Tax (VAT) that may be levied on residential condominiums from April 1, this year, according to Sotheby’s International Realty Sri Lanka Sales and Marketing Director Charles Phillpot.
“While in the past this proposed tax has been withdrawn post-announcement, this time it has been notified and so far there is no announcement from the government about any deferment or cancellation,” Phillpot told reporters in Colombo this week, during a media briefing held at the Sapphire Residences’ experience centre.
However, he said that the buyers are making assessments on completing their purchases in advance of this tax potentially coming into force.
“Having Sapphire Residences’ units open for reservation since October last year, 20 units have so far been reserved and are processing,” he said.
Meanwhile, Welcomhotels Lanka (Pvt.) Ltd Managing Director Arun Pathak praised and commended the project on achieving the globally recognised ‘Leadership in Energy and Environmental Design’ (LEED) pre-certification at Platinum level, ensuring the lowest environmental impact of any building on this scale.
“Luxury with sustainability are in our DNA and the best practices have been incorporated here. Construction is well on target and we are committed to the timely completion of the project. The market has received the development very positively and we remain optimistic for the future,” Pathak said.
Welcomhotels Lanka (Pvt.) Ltd, a wholly-owned subsidiary of ITC Ltd, registered in India, spearheads the Sapphire Residences project, with Sotheby’s International Realty joining to assist in the promotion and sales of the units.
The 50-storey residential tower with 132 sky mansions and penthouses manifests ITC’S objective of offering quality over quantity.
The project also includes a 30-storey hotel with 352 rooms with all amenities and services fitted to ITC’S five-star standards.
Sapphire Residences also offers South Asia’s first sky bridge, which is expecting completion by August/september this year, with the overall project due completion by December 2020.
ITC has appointed local subcontractors on long-term partnership basis, namely, Access Engineering for diaphragm wall, excavation and piling, International Construction Consortium (ICC) for residential area structure and civil works and Nawaloka Construction Company (NCC) for the hotel area structure and civil works.
In the resources front, ITC relies on local equipment and locally purchased materials in bulk. The workforce is over 1,100 strong with 80 percent of them being local.