2- Legal Issues
2.1- Taxation
Sri Lanka's tax rate are mid-range for the region the highest corporate tax is 28%, related to Pakistan -35%, India -30%, Bangladesh -27.5%, Nepal -25%, and Maldives -0% private sector contacts and economists generally admire the government for maintaining the quiet consistent tax policy over the certain years, for some, persistent taxes are also relevant than lower taxes. One unusual omission was the 2013 extension of the 12.5% value added tax (VAT) to supermarket and huge trading houses.
Foreign investors not qualifying for board of investment incentives such as tax and exchange control discharge or privilege are liable to pay taxes on corporate profit, dividends, and remittances of profits. They are also liable to pay a VAT on goods and services. An economic services charge (ESC) at 0.25% of income applies to BOI-approved companies appreciate tax holidays (U.S. Department of State, 2014).
2.2- Employment Laws
2.2.1- Labor Market
Sri Lanka's labor market is not large is small market with a limited pool of experienced workers. Engineering, accounting, legal and architectural professions follow high standards, although local design is still undeveloped. Labor is available at comparatively low cost, still it is estimated higher than in some other south Asian countries. Many of Sri Lanka's top graduates seek employment outside the country. For those who remain, Sri Lanka's labor laws afford many employee protections. Many investors consider this legal framework somewhat rigid however making it difficult for companies to reduce their workforce. Cost of rejecting an employee in Sri Lanka is, percentage -wise, one of the highest in the world. Sri Lanka's labor force is literate (particularly in local lan...
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... sign important off-budget expenditures.
Sri Lanka ranking is the World Bank control of corruption index, which varies from -2.5to +2.5, has decline to -0.46 in 2011 and from -0.45in 2010 and -0.40 in 2009. In a 2006 USAID democracy and governance assessment, unreliable information from the private sector indicated an advance in the interest public sector commitment that must be paid in bribes. A senior economist claimed that, in 2012, Sri Lanka has lost as much as two percentage points of GDP rise due corruption.
Sri Lanka approves the UN Anti - corruption convention in 2004. Sri Lanka has signed but not approves the convention against transnational organized crime. Sri Lanka became a registrar to the OECD-ADB Anti-Corruption regional plan n may 2006. Experiment to introduce of information Act to rise clarity have been unsuccessful (U.S. Department of State, 2014).
Corruption is defined as the dishonest conduct one performs for illegitimate private gain (Paskal). To determine where corruption
...organizations, NGOs, and businesses to eliminate the corruption in order for policies to be more effective and operational.
Chetwynd, Eric, Frances Chetwynd, and Bertram Spector. "Corruption and Poverty: A Review of Recent Literature." Management Systems International (2003): n. pag. Print.
Its population is 21,866,445. The majority of their population are Buddhist the rest are either Muslim, Hindu, or Christian. Buddhism was brought to Sri Lanka in the 5th century B.C. The legend that is told states that Buddha ordered a group of his followers to travel to Sri Lanka and spread Buddhism. According to this legend Buddha said that Buddhism would strive in Sri Lanka for 5,000 years. (Flinkins,3) This legend holds true for the most part, the sinhalese Buddhists have taken down any threat that has been made to their religion. With the knowledge that Buddhism is a religion of nonviolence and peacefulness one may assume that Sri Lanka could be one of the most peaceful nations in the world. Unfortunately this assumption is very wrong. The way the Buddhist tackle the threats to their religion causes this country to be
Corruption is commonly defined as “being dishonest or illegal behavior, especially by powerful people (such as government officials or police officers)” according to Merriam-Webster.com. However, although defined, corruption cannot be measured. Without measurement of this ten letter word, it becomes troubling within jurisdiction’s law abiding citizens live in. As a result, hysteria, panic and doubts arise which are only a few out many reactions the public makes. With the press only stirring greater chaos, corruption is never completely solved, which is why it must be confronted and measured before it’s too late. If not it’ll only continue to linger throughout media headlines and forums, but also the society, it conclusively affected and left a mark on for example, Pageland, SC.
Sri Lanka has also experienced a series of socio-political disturbances over the past several decades including...
The Indian Express. India ranked 94th in Corruption Perception Index ratings says Transparency International. The Indian Express. December 5 2012. Web. Available at: http://archive.indianexpress.com/news/india-ranked-94th-in-corruption-perception-index-ratings-says-transparency-international/1040857/
Governments in several countries, including the UK, Spain, Ireland and Hungary, have increased their indirect tax rates in recent years. Assess the likely economic effects of such a tax increase in a country of your choice. (20 marks)
Only Final Goods Ought to be Taxed, And Typically They Ought To be Taxed Uniformly:….
United Nations Department of Public Information 2002, Draft United Nations Convention against Transnational Organized Crime, visited 10 May 2010, .
Some people said that corruption is rampant in all governments, So that it is not unknown to any ethnic group, region and continent. It cuts across faiths, political systems, religious Denominations and affects both young and old people. Fraud can be found in public and authoritarian rule;...
... to implement UNCAC and therefore face a smaller decrease of corruption. Obviously, two case study can just highlight possible approaches and future research should conduct a cross-country analyzes in order to further evaluate the relevance of mimetic isomorphism among UNCAC. Furthermore, the avenue for future research is narrowed as rational learning is theoretically excluded to explain the behavior of countries before the published review reports. However, it is open to research if rational learning might explain the behavior of countries who start the implementation after 2010. Based on the findings, the UN should change its implementation review process which only controls for the correct imitation of the UNCAC. In contrast the discussed theory of rational learning would suggest that the efficiency of the implemented policies should be measured in each country.
Tax policy is a major issue in today’s society that affects the changes of economic growth that is being portray. Tax policy is the choice by a government as to what taxes to excise, the amount, and on whom. It has a macroeconomic and microeconomic aspects of tax policy, the macroeconomic has an overall concern of taxes to collect, which affects the level of economic activity; this is called the fiscal policy. The microeconomic concerns the issues of fairness and a preferences of the consumer from the amounts of various types of economic activity. Due to tax policy is a big issue that has been affecting the economy in several of ways.
Kearney, A.T. (2001). Corruption and the Globalization Index. Last access on 27 March 2005 at URL: http://www.globalcorruptionreport.org/download/gcr2001/data_and_research.pdf NAIM, Mois´s (1995). Corruption Eruption. Last accessed on 2 April 2005 at URL: http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=648 MORAN, Robert T. and RIESENBERGER, John R. (1994)
Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.