Treasury removes taxes on artistes, children’s accounts

Several amendments are to be made to the Inland Revenue Act (IRA) this month withdrawing certain taxes imposed on savings accounts of small children and local artistes, Finance Ministry sources disclosed.

Finance Minister Mangala Samaraweera will present these amendments in parliament for its approval before the end of this month.

The 5 per cent withholding tax imposed on children’s bank savings accounts under the age of 18 will be removed after passing the amendment in parliament and issuing the necessary circular towards this end to all commercial banks, a Ministry official said.

The new amendments will ease the tax burden of local artistes and their net income up to Rs 500,000 per annum will be exempt from taxation.

Further the 14 per cent withholding tax on the sales proceeds of tele dramas will also be removed, he said adding that these tax exemptions cannot be granted without an amendment introduced to the Act and passed it in parliament.

He also said that the royalty fees paid by publishers to authors up to Rs. 50,000 per month or Rs. 500,000 per year will be exempt from taxes

The annual net income obtained by artistes in literature, arts, music, and stage and film sectors from their productions, after deducting the costs incurred for the workers, including payrolls or other payments, will be tax free up to Rs.500, 000.