Deputy Minister of Industries and Entrepreneurship, Chathuranga Abeysinghe, stated that tax reductions are unlikely this year due to the government’s obligation to collect 15.1% of GDP in taxes under agreements with the IMF.
He emphasized that any reduction in indirect taxes must be implemented gradually and that meeting the IMF-mandated tax target is a priority before offering industry-specific concessions.
The government’s long-term plan includes tax incentives, particularly for technological investments in the banking and industrial sectors.
The upcoming budget on 17thof February will outline initiatives aimed at fostering industrial growth through financial support and policy reforms.
A new tax framework, the “Tariff Policy,” will be introduced to lower or remove taxes on production inputs, ensuring industrialists have better access to essential imported materials.
Abeysinghe addressed concerns over tax-free imports and invoice undervaluation, stating that protective measures under the anti-dumping policy will be implemented to safeguard local industries.
While tax policies may differ across industries, he clarified that an overall tax reduction should not be expected in the forthcoming budget.
