CCC welcomes delayed April 2018 implementation of IRD Act

The Sri Lanka Government's decision to delay the implementation of the new Inland Revenue Act to April 1, 2018 - six months from now -, has been welcomed by the Ceylon Chamber of Commerce (CCC).

The chamber in congratulating the Ministry of Finance on the successful passage of the legislation in Parliament said it had also strongly urged a change of date in its implementation.

"The Ceylon Chamber stayed extensively engaged throughout the process of drafting the new legislation, and is grateful for the space provided by the government to have our views heard," the chamber said in a media release last week.

Ministers Mangala Samaraweera, Malik Samarawickrama, and Eran Wickramaratne, as well as officials of the Ministry of Finance were sensitive to private sector concerns and suggestions submitted by this chamber, it said, adding: "This was a fine example of a collaborative approach to policymaking, and we hope that other policy makers too will adopt a similar approach. We look forward to the same level of openness and consultation in the formulation of the National Budget 2018. The chamber has always advocated for, and supported the process of, a healthy dialogue between the public and private sector on the basis that such consultations are essential for sustainable policy making."

Referring to the government's Vision 2025 of ' An Enriched Country' statement, the chamber said that for the private sector to better contribute to the achievement of this vision there is a need for predictability in the levy of taxes. "The business community strongly opposes retroactive legislation in dealing with the tax regime. Domestic and foreign investors must have confidence in the stability of a tax system, when formulating their business plans," it said.