Sep 19, 2017

Artistes exempted from income tax for up to Rs. 500,000 net profit! Featured

Income tax will be levied under the new tax Act on the basis of income and profit of a person from the respective economic activity and not on that person’s social status or professional field, said a finance ministry spokesman.

Dr. Somaratne Dissanayake of the Sri Lanka Cinema Creations Forum has written to the president, prime minister and the finance minister against the removal of tax concessions granted for literary, musical, stage play and cinema fields.

The spokesman told 'Sri Lanka Mirror' that if an artiste's annual net profit is Rs. 1.1 million, Rs 500,000 will be exempted from the taxes. The balance of Rs 600,000 will be subjected to 4% tax. Any other payment made to persons in-charge for the artistic preparations will be waived off up to Rs 1.2 million.

Simplifies taxes, treats every citizen equally

The spokesman also said that the existing tax system was a complex one that granted tax concessions and holidays without any basis.

As a result, 20 pc of the population enjoy 54 pc of the income benefits.

The new act will simplify the tax system and treat every citizen, including the president, equally and tax will be levied on the basis of income.

As a result, special tax concessions granted to artistes will be annulled.

The new tax system will come into effect on 01 April 2018.