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As enacted
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3. Imposition of a Nation Building Tax

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A tax to be called the “Nation Building Tax”

(hereinafter referred to as “the Tax”) shall, subject to the provisions of this Act, be charged from every person to whom this Act applies calculated at the rate of one per centum, in the following manner:—

(i)

in the case of a person referred to in paragraph (a) of subsection (1) of section 2, who imports any article into Sri Lanka on or after January1, 2009 the tax shall be chargeable in respect of the liable turnover of such person arising from the importation into Sri

Lanka of such article; and

(ii)

in the case of a person referred to in paragraph (b) or (c) of subsection (1) of section 2, for every quarter commencing on or after January 1, 2009 (hereinafter referred to as “relevant quarter”, the tax shall be chargeable in respect of the liable turnover of such person for such relevant quarter.

(2)

In this section “liable turnover”—

(i)

with reference to any person referred to in paragraph (a) of subsection (1) of section 2 arising from the importation of any article, means the value of that article ascertained for the purpose of Value Added

Tax under section 6 of the Value Added Tax Act,

No. 14 of 2002;

(ii)

with reference to any person and to any relevant quarter referred to in paragraph (b) of subsection (1) of section 2, means the sum receivable whether received or not from the sale in Sri Lanka, in that quarter, of every article manufactured by such person;

(iii)

with reference to any person referred to in paragraph (c) of subsection (1) of section 2 and to any relevant quarter means the sum receivable, whether received or not, from the provision in Sri Lanka of any service referred to in that paragraph.

(3)

Notwithstanding the provisions of subsection (2), the liable turnover for any relevant quarter of any person to whom this Act applies, referred to in paragraph (ii) or (iii) of that section shall not include—

(i)

any bad debt incurred by such person in that quarter;

(ii)

any value added tax under the Value Added Tax

Act, No. 14 of 2002 paid in that relevant quarter;

(iii)

any excise duty under the Excise Duty (Special

Provisions) Act, No. 13 of 1989, paid in that quarter:

Provided however, any bad debt recovered in any relevant quarter, shall be included in the relevant turnover of that relevant quarter.

(4)

Notwithstanding the provisions of subsection (1), the tax shall not be chargeable from any person referred to in paragraph (b) or paragraph (c) of subsection (1) of section 2, for any relevant quarter if—

(i)

liable turnover of such person for that relevant quarter does not exceeds the sum of six hundred and fifty thousand rupees;

(ii)

such person has paid for that relevant quarter optional Value Added Tax under Chapter IIIB of the

Value Added Tax Act, No. 14 of 2002.

Read on from s 4

Schedules