7. Levy of Cess on net premium income

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

(1)

There shall be charged, levied and paid a cess at such rates as may be determined by the Minister with the(concurrence of the Board from time to time by Order published in the Gazette, on the annual net premium income of every insurer, so however that such rate shall not exceed one half per centum of such annual net premium income.

(2)

Every Order made by the Minister under this section shall come into force on the date of its publication in the

Gazette or on such later date as may be specified therein, and shall be brought before Parliament for approval within four months of the date of its publication. Any such Order which is not so approved shall be deemed to be revoked from the date of disapproval, but without prejudice to the validity of anything previously done thereunder.

(3)

The cess imposed under this section shall be in addition to any other tax or cess levied under any other written law.

(4)

For the purpose of subsection (1) “annual net premium income” means the gross insurance premium income, less reinsurance premium.

Read on from s 8

Part II