Sri Lankan Government Grants Tax Relief

The Sri Lankan government has decided to grant local ship owners tax relief by exempting them from a three per cent port levy, in an effort to encourage them to register vessels under the domestic flag.

The decision was announced in parliament today by president Mahinda Rajapakse, who is also finance minister, when he presented the government budget for 2008, reports Fairplay.

The tax break came after threats by members of the Lanka Association of Ship Owners to register their vessels elsewhere if the charge was not withdrawn. The owners had been demanding that Sri Lankan-flagged ships should not be considered as imports. The government accepted this demand, Rajapakse said – but added that cargo carried by such vessels would be charged 15% duty.

Source:Seanews