Tax laws to be amended to increase government revenue

The Legal Draftsman’s Department will prepare a set of new bills shortly to amend several of the Tax laws to increase government revenue.

The laws that are to be amended are

INLAND REVENUE ACT, No. 24 OF 2017

Value Added Tax Act, No. 14 of 2002

Telecommunication Levy Act No21 of 2011

Betting and Gaming Levy Act, No.40 of 1988

Fiscal Management (Responsibility) Act No. 3 of 2003

The amendments were necessary since the government decided to introduce a relaxed tax policy later in 2019 to reduce the rates of value added tax, personal income tax, corporate income tax and to shrink the tax base on value added tax and income tax.

As a result, government revenue has dropped significantly. In this context, the Cabinet of ministers approved the proposal presented by the Prime Minister to direct the legal Draftsmen to prepare the necessary Bills to amend Tax laws  with a view to increasing Government revenue.