21. Insertion of sections 59I, 59J, 59K, 59L and 59M of the principal enactment

The following new sections are inserted immediately after section 59H of the principal enactment and shall have effect as sections 59I, 59J, 59K, 59L and 59M of that enactment :-

59I. The tax rate applicable on the profits and income of an existing company carrying on a business of manufacture of products (other than liquor or tobacco), on expansion of the manufacturing of such products of such company in any Province other than the

Western Province (not by relocating the existing company or part thereof), by investing in the acquisition of fixed assets (other than land or building) not less than three hundred million rupees for any year of assessment commencing on or after April 1, 2015 but prior to April 1,

2017, and which is liable to pay income tax at the rate specified in item 3 of PART-B of the

Second Schedule to this Act, shall be reduced by fifty per centum up to a maximum not exceeding five hundred million rupees, for the year of assessment in which such company commences the commercial operations of such expansion project and another four years of assessment immediately succeeding that year of assessment.

59J. The tax rate applicable on the profits and income of any company which is registered with the Department of Inland Revenue for tax purposes on or before December 31, 2015 with a committed investment in excess of five hundred million rupees, to be made in any manufacturing business (other than liquor or tobacco based products) not by splitting-up or re - construction of an existing undertaking of

“Rate of income tax applicable to profits and income of any manufacturing company which carries on an expansion of such business to any

Province other than the Western

Province.

Rate of income tax applicable to the profits and income of a new company engaged in any manufacturing business.

any nature within the specified period as approved by the Commissioner General, shall be reduced by fifty per centum for the year of assessment in which such company commences the commercial operations and for consecutive period of six years of assessment immediately succeeding that year of assessment, if the applicable rate of income tax is twenty eight per centum.

59K.

Income tax payable by local manufacturer who is in the business since 1970

Such part of the tax computed in accordance with this Act, for any year of assessment commencing on or after April 1, 2015, as being payable by any manufacturer who has been in the business of manufacturing since the year nineteen seventy and sustained competitiveness with imports, shall notwithstanding anything to the contrary in any other provisions of this Act, be reduced by ten per centum, on the profits and income from the sales made on such manufactured products

(other than liquor or tobacco based products)

in the local market which is liable to tax at the maximum rate of twenty eight per centum on the profit on ssuch sales.

59L.

Income tax payable by local entrepreneurs engaged in intercropping activities or vegetable and food processing activities

Such part of the tax computed in accordance with this Act, for any year of assessment commencing on or after April 1, 2015, as being payable by any local entrepreneurs engaged in the intercropping activities or vegetable and food processing activities, be reduced by fifty per centum, on the profits and income from such activities.

For the purpose of this section :

“local entrepreneur” means, a person who is a citizen of Sri Lanka and includes a company or partnership, the controlling interest of which is held by Sri Lankans;

“Intercropping activities” means, cultivation of two or more crops simultaneously on the same field;

“vegetable and food processing activities” means, processing of vegetables or foods by any person with not less than thirty five percent of local value addition and the final product shall consist of not less than seventy per centum of locally grown vegetables or locally manufactured foods.

59M.

Income tax payable by a person on an undertaking located in any lagging region

Such part of the tax computed in accordance with this Act, as being payable by any person being a manufacturer or provider of services who made investment in any undertaking for the manufacture or the provision of services located in any lagging region in a sum of not less than two hundred and fifty million rupees on or after February 1,

2015 but prior to March 31, 2017, shall notwithstanding anything to the contrary in any other provisions of this Act, be reduced by fifty per centum, on the profits and income of such person for the year of assessment in which such undertaking commences business operations and another four years of assessment immediately succeeding that year of assessment.

For the purpose of this section “lagging region in relation to any year of assessment”

means, any Divisional Secretary’s Division as being in a state of economic backwardness as specified, by the Commissioner-General by

Notice published in the Gazette in consultation with any appropriate authority within whose jurisdiction such Division comes and with the approval of the Minister.”.