As enacted

Contents

6. Amendment of section 16C of the principal enactment

Official English translation. The Sinhala text prevails.

Section 16C of the principal enactment is hereby amended as follows:-

(1)

by the substitution in subsection (1) of that section, for the words “shall be exempt from income tax for a period of three years reckoned from”, of the words

“shall be exempt from income tax for the period specified in Column III as corresponding to the investment specified in Column II and the types of activities specified in Column I of the Schedule hereto reckoned from,”;

(2)

by the insertion, immediately after subsection (1)

of that section, of the following Schedule :—

“SCHEDULE

(3)

by the repeal of subsection (2) of that section and the substitution therefor of the following new subsection:—

“(2) For the purposes of subsection (1), “new undertaking” means an undertaking –

(a)

which is engaged in –

(i)

agriculture, animal husbandry or fishing;

(ii)

the manufacture of any article

(including the processing of such article), other than any liquor or any tobacco product;

Column I

Column II

Column III

(Activities)

(Amount of investment

(Period of

in Rupees)

exemption)

Agriculture, animal husbandry or fishing (including processing), creative work including work of an artist,

Information

Technology

Not less than 25

million, but less than 50 million 4 years

Any activity referred to in paragraph (a) of subsection (2), but not including services relating to agriculture

(products shall be with a minimum of 35% value addition, if more than 50% of the production is to be sold in the domestic market)

Not less than 50

million, but less than 100 million 4 years 5 years 6 years”.

Not less than 100 million but less than 200 million

Not less than 200

million

(iii)

the provision of services of Information

Technology;

(iv)

software development;

(v)

business process outsourcing;

(vi)

knowledge process outsourcing;

(vii)

the provision of healthcare services;

(viii)

the provision of educational services;

(ix)

the provision of beautycare services;

(x)

the provision of cold room and storage facilities;

(xi)

tourism;

(xii)

fitness centre services or providing facilities for sports;

(xiii)

creative work including work of an artist;

(xiv)

mini hydro power projects;

(b)

in which the sum invested in the acquisition of fixed assets after March 31, 2011 but prior to April 1, 2015 is not less than the corresponding sum specified in Column II of the Schedule to subsection (1); and

(c)

which commences commercial operations on or after April 1, 2011.

For the purposes of this section “the amount of investment” means the cost of any land, plant, machinery, equipment and other fixed assets.”.

Read on from s 7