The Government has presented to Parliament the two gazette notifications which authorises tax concessions to two major projects — the Port City Project (PCP) at Galle Face and the Mix Development Project (MDP) in Slave Island.
The Gazette notification provides the US$1.3 billion Port City Project a six-year holiday on corporate tax, with the dividends distributed to shareholders being exempted from income tax for 25 years.
The project company is also to be exempted from withholding tax on interest on foreign loans, management and royalty fees payable while such charges should not exceed three per cent of the gross operating revenue.
In addition, expatriate staff of the PCP shall be exempted from PAYE tax as well. The project will be exempted from VAT during the implementation period while the project company contractors will be exempted from construction industry guarantee fund levy.
It will also be exempted from paying CESS for eight years during the implementation.
The Kompannaweediya(Slave Island) Mixed Development Project is also being provided with similar tax concessions.
The two gazette notifications had been presented by Chief Government Whip GayanthaKarunatilake on behalf of Development Strategies Minister Malik Samarawickrama on Friday. (Yohan Perera)