The Business Edge Vol 2

Issue 02:16-20 September 2022

Free Trade Zone manufacturers oppose 30% income tax move…

The Free Trade Zone Manufacturers Association (FTZMA) has written to President Ranil Wickremesinghe expressing its opposition to the proposed 30% tax on profit earned, warning it will have a serious impact on their survival and in luring much needed FDIs to Sri Lanka.

In their letter to President, FTZMA Chairman Jatinder Biala and Secretary Dhammika Fernando said the proposed 30% is an “intolerable rate” and not the concessionary rate to exporters who have to compete with regional countries such as Bangladesh, Vietnam, Indonesia and Thailand with whom Sri Lanka exporters have to fight for foreign markets, buyers etc. It said the corporate tax for exporters in both India and Bangladesh is half of the standard tax rate.

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FTZMA calls on Govt. to extend permits to import…

The Free Trade Zone Manufacturers Association (FTZMA) has called on the Government to extend the electric vehicle import license for foreign investors registered with the Board of Investment to boost ‘quality FDIs’.

In a letter addressed to BOI Director-General Renuka Weerakone, the FTZMA has proposed the Government extend a similar benefit to the foreign investors who are operating under the purview of BOI to import electric vehicles which would be of an additional benefit to them to attract more FDIs and to be resilient during the ongoing economic crisis.

“We are of the opinion that foreign investors those who bring in FDIs into the country are also equally contributing to the economy, as they foster and maintain economic growth by not only creating job opportunities to ease the unemployment in the country but also bring in much needed foreign exchange into the country,” FTZMA pointed out.

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