Kabir wants Sri Lanka to follow Indian tax system

5 October 2022 01:38 am Views - {{hitsCtrl.values.hits}} 7 Bookmark

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COPF to green light tax concessions for India’s HCL Technologies subject to Finance Ministry justification

By Yohan Perera and Ajith Siriwardana

Sri Lanka should follow the Indian tax system when it comes to granting tax concessions to foreign investors, main opposition Samagi Jana Balawegaya (SJB) proposed yesterday.

Speaking during the debate in parliament on granting a 17-year tax holiday to India’s HCL Technologies Ltd, SJB MP Kabir Hashim said Sri Lanka should follow the Indian system rather than giving long tax holidays to any company.

“India gives tax concessions to foreign companies only if they locate their businesses in special economic zones. Only five-year tax holidays are given in India. Accordingly, the Indian government charges a 50 percent tax on profits after the five-year tax holiday lapses. Sri Lanka also should follow this system,” he said.

“We accept that HCL Technologies is one of the largest IT companies in India and that it will invest US$ 10 million and pays monthly salaries of Rs. 500,000 for some of its employees and will increase (salaries) it to Rs. 1 million in the future. We also understand the fact that the company will provide employment to 5, 380 Sri Lankans by 2032,” he added.

Meanwhile, it was reported that the Committee on Public Finance (COPF) had agreed to give the green light for the granting of tax concessions to HCL Technologies Ltd. provided the Finance Ministry justifies the decision to grant a long tax holiday under the Strategic Development Act.

Comments - 7

Punchi Wednesday, 05 October 2022 06:31 AM

HCL technologies want to steal the unused therefore valuable brains of us lankans and sell them. We must stop this type of modern colonisation. The Chinese did buy kidneys and corneas from the fallen and terminated during the war, but now only want territory and not our valuable brains

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Gunathilaka Wednesday, 05 October 2022 06:55 AM

Indian intelligence is holding many Sri Lankan politicians by their “balls”.

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Jagath Wednesday, 05 October 2022 07:09 AM

With big fanfare Indians sent a Spacecraft to the Mars but it crashed into the sea, and the Indians thought that they have discovered water in Mars.

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Daya Wednesday, 05 October 2022 07:12 AM

Giving long tax holidays to foreign companies and taxing the local companies and population to cover the government expenses, is ridiculous. We accept there should be concessions for foreign investments, but not 17 years tax holiday for IT industries.

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curious Wednesday, 05 October 2022 08:57 AM

IT industries provide employment for educated youth unlike other import substitute industries that are given a tariff protection to enjoy a monopoly and deprive the consumers to choose a quality product at an affordable price. Most of the steel rolling mills operating as BOI projects employ Indian, Bangladesh and Chinese labourers. Their operations are shady as they don't issue valid invoices for their sales. Nothing but a mafia game.

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K.wijesuriya Wednesday, 05 October 2022 09:06 AM

Only foreign companies are getting tax concessions while local companies getting involved to the tax net in a very large scale. Finally local companies will be completely destroyed . Finally Sri Lankan businesses will be wiped out . This is the road and path of the government. K. wijesuriya .

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Lankan for unity Wednesday, 05 October 2022 11:02 AM

17 year holiday is ludicrous. As mentioned India allows only for five years. Grant for such a long no tax time/holiday with no justification is just mad. The increases in salary will happen as the rupee tumbles to it's real value against the dollar/Indian rupee, and as the continued money printing drives up inflation anyway. If our inflation is now near 75%, then asking for salary to be doubled in two years by employee is nothing. Pointless reasons for asking for tax holiday. All revenue from tax should be had, and giving these long holidays is just irresponsible.

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