Essay On Taxation In Sri Lanka

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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... ... middle of paper ... ... 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).

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