5-Year tax reduction for agri-product income

(FASTNEWS|COLOMBO) – A five-year tax exemption on agro industry with an income tax reduction from 28 per cent to 14 per cent, will be introduced, the Finance and Economic Affairs Ministry said on Friday (23). This measure aims to promote the agri-production in the country for exports and consumption purposes.

The Government has decided to provide a five-year tax exemption to the agricultural based small and medium industry. In addition the annual income tax rate on processing industries using local agricultural commodities will be reduced from 28 per cent to 14 per cent.

It is also proposed to raise the threshold for the application of ESC Economic Service Charge from Rs. 12.5 million per quarter to Rs. 50 million per quarter, to ease hardships to smallholder business operations. These relief measures taken on the instruction of the President and the Finance and Economic Affairs Minister are aimed at providing highest priority to agricultural development.