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As enacted

5. Amendment of the first schedule to the principal enactment

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

The First Schedule to the principal enactment is hereby amended in PART II thereof as follows:-

(1)

in paragraph (a) of that PART :-

(i)

by the repeal of item (x) and substitution therefor of the following item:-

“(x)

agricultural machinery, mammoties, forks, fertilizer

(effective from 01.07.2004), artemia eggs and peat moss classified under the Harmonized

Commodity Description and

Coding System Numbers for

Custom proposes;";

(ii)

in item (xii), by the substitution for the words and figures “machinery used for construction industry imported not later than December 31, 2010” of the words and figures “machinery used for the construction industry,”;

(iii)

by the addition immediately after item (xxi) of the following:-

"(xxii) (i)

lorries, trucks, buses, sports equipments, machinery used for the production of rubber or plastic products, sunglasses, perfumes, moulding ( steel, glass, rubber or plastic), photo sensitive semi conductor devices;

Act, No. 7 of 2012

(ii)

raw materials for the manufacture of spectacles and spectacle frames ;

(iii)

items and spares for the poultry industry;

(iv)

wood (sawn);

(v)

fabric for domestic consumption subject to a cess at a specific rate in lieu of chargeability of any other tax payable on importation at the point of entry into the country, as specified in a Gazette

Notification issued under the Sri Lanka Export

Development Act, No. 40 of 1979, classified under the Harmonized

Commodity Description and

Coding System Numbers for

Custom purposes;

(xxiii)

goods for any international event approved by the Minister of Finance taking into consideration the economic benefit to the country, by conducting such event in Sri

Lanka.”;

(2)

in paragraph (b) of that PART:-

(i)

in sub-paragraph (A), by the repeal of item (ii) and the substitution therefor of the following ;–

“(ii)

lorries, tractors or motor coaches with a seating capacity of not less than twenty eight

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passenger seats, in respect of any rental falling due for payment on or after April 1, 2012.”;

(ii)

by the repeal of item (xiii) and the substitution therefor of the following:-

“( xiii) imported unprocessed timber logs or ships or any article subject to the Special

Commodity Levy under Special

Commodity Levy Act, No. 48 of 2007 subject to the condition that such Nation Building Tax referred to in paragraph (d) of subsection (10 ) of section 2 of the Nation Building Tax Act,

No. 9 of 2009, shall be payable in respect of such article.”;

(iii)

by the addition immediately after item (xxxv) of the following:-

“(xxxvi) locally manufactured–

(i)

hydropower or wind power machinery and equipment;

(ii)

turbines;

(iii)

canned fish or clay pottery products using locally produced raw materials;

(iv)

products using locally procured raw materials for the required specification of tourist hotels or airlines;

Act, No. 7 of 2012

(v)

specified products to identified state institutions replacing imports, by the manufacturer in so far as such products are locally value added products, as per the conditions specified in the guidelines issued for this purpose;

(xxxvii)

(i)

locally manufactured fabric in the domestic market by any manufacturer who does not enjoy any concessions under any agreement entered into with the Board of Investment of Sri Lanka;

(ii)

fabric which are subject to a cess at a specific rate classified under the

Harmonized Commodity

Description and Coding

System Numbers for

Custom proposes, in lieu of chargeability of any other tax on importation at the point of entry into the country, by the Director-General of Customs as specified in a Gazette

Notification issued under the Sri Lanka Export

Development Act, No. 40

of 1979;

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(xxxviii)

services, being research and development services provided by the supplier of such services within the meaning of the Inland Revenue Act,

No.10 of 2006 for the purposes of deduction under section 25 of that Act;

(xxxix)

painting, at the point of sale, by the artist thereof;

(xL)

services, by the Department of

Commerce, with effect from January 1,

2012, services by the Board of

Investment of Sri Lanka or the Sri Lanka

Ports Authority, with effect from April 1, 2012, in so far as such services are provided to exporters or to providers of services which are zero rated services, for the purposes of tax under this Act;

(xLi)

being any sum paid out of the Export

Development

Fund as export development rebate with effect from

October 8, 2009;

(xLii)

specific services for any international event approved by the Minister of

Finance having taken into consideration the economic benefit to the country by conducting such an event in Sri Lanka;

(xLiii)

services, which result in the improvement of quality, character or value of any fabric or garment with effect from April 1, 2012;

(xLiv)

locally manufactured palm oil, with effect from April 1, 2012.”;

Act, No. 7 of 2012

(3)

in paragraph (c ) of that PART :-

(a)

by the repeal of item (xxiii) and the substitution therefor of the following:-

“(xxiii)

goods, for a project identified as a strategic development project under the provisions of the Strategic Development

Project Act, No.14 of 2008, during the project implementation period, subject to the conditions specified therein or with the approval of the Minister of

Finance any special project referred to in paragraph (f);”;

(b)

in item (xxviii), by the substitution for the words “discharge lamps and arc lamp carbon" of the words and figures

"discharge lamps, arc lamp carbon, speakers, amplifiers, digital stereo processors and accessories, cinema media players and digital readers”;

(c)

by the addition immediately after item (xxx) of the following:-

“(xxxi) pharmaceutical machinery and spare parts for the pharmaceutical machinery which are not manufactured in

Sri Lanka, classified under the

Harmonized Commodity

Description and Coding

System Numbers for Custom proposes, imported by pharmaceutical manufacturers

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and recommended by the

Secretary to the Ministry of

Health, including pharmaceutical machinery or parts imported after June 1,

2011

under the same conditions on which Value

Added Tax has been deferred;

(xxxii)

machinery for the manufacture of bio mass briquettes and pallets so far as such machinery is imported by the manufacturer of such products classified under the

Harmonized Commodity

Description and Coding

System Numbers for Custom proposes, including such machinery imported after

June 1, 2011 under the same conditions on which Value

Added Tax has been deferred;

(xxxiii)

green houses, poly tunnels and materials for the construction of green houses, by any grower of agricultural products or plants of any type, subject to the condition that such items are not manufactured in Sri Lanka, and approved by the

Director-General, Department of Fiscal Policy on the recommendation of the

Secretary to the Ministry of

Agriculture;

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(xxxiv)

plant, machinery or equipment by any enterprise qualified for a tax exemption under section 16D and17A of the Inland Revenue Act, No.

10 of 2006, for the use by such enterprise for the purposes specified in the agreement entered into with the Board of

Investment of Sri Lanka on which tax is deferred during the project implementation period, subject to the fulfillment of the conditions specified in the agreement, during the project implementation period;

(xxxv)

any goods, ( other than motor vehicles and goods for personal use) required for the purpose of provision of services being international transportation which is consigned to Sri Lankan Air

Lines Limited, Mihin Lanka

(Pvt) Ltd. or Air Lanka

Catering Services Ltd. ;

(xxxvi)

fabric, specified under the

Harmonized Commodity

Description and Coding

System Numbers for Custom proposes, for the sale in the domestic market without any value addition, subject to the chargeability of a cess of rupees seventy five per kilogram on importation .”.

Act, No. 7 of 2012