Cabinet nod for plan to bring black money out

• To allow individuals to invest their undisclosed assets and incomes subject to 1% tax on voluntary disclosure 

The Cabinet of Ministers this week approved a proposal to allow entrepreneurs and investors to disclose and invest their undisclosed incomes and assets a.k.a. black money, subject to only one percent tax on voluntary disclosure.

Prime Minister Mahinda Rajapakse, in his capacity as the Finance Minister, on Monday sought the approval of the Cabinet of Ministers to publish a draft bill in the government gazette to put the plan into effect and subsequently to present it to Parliament for approval.

The move, which is based on a Budget 2021 proposal, is expected to impose the required legal provisions to exempt such individuals from legal obligations and consequences, including investigation or prosecution on violating tax laws and regulations in the past, if they agree to pay a one percent tax. 

The government expects to increase state revenue and investments through the proposed exemption, which would encourage individuals to declare their undisclosed incomes and assets.