GOVT. OFFERS FIVE-YEAR TAX CONCESSIONS TO AGRICULTURAL SECTOR

tax reducton from 28% to 14%

The government has decided to provide a five year tax exemption to the agricultural based small and medium industry with income tax reduction from 28 % to 14%, the Ministry of Finance and Economic Affairs said in a statement yesterday.

It said this was done to promote the agricultural production in the country for exports and consumption purposes. Accordingly, agricultural income generated specially by the small scale entrepreneurs in the cultivation of any agricultural produce such as tea, spices, coconut, rubber, paddy, fruits, vegetables, etc, to be exempted from income taxation for a period of 5 years. As measure to ease the serious hardships to small holder business operations, it is proposed to raise the threshold for the application of ESC Economic Service Charge from Rs. 12.5 million per quarter to Rs.50 million per quarter.

“These relief measures have been taken on the instruction of the President and the Minister of Finance and Economic Affairs with the intention of providing highest priority to agricultural development”, it said.