Ceylon Chamber of Commerce concerned over Surcharge Tax

COLOMBO (News 1st); The Ceylon Chamber of Commerce has raised concerns over the government's proposed law to impose a surcharge tax on profits.

In a statement, the Ceylon Chamber of Commerce said imposing retrospective taxes are arbitrary and would negatively impact investor confidence.

The CCC said an income tax surcharge of 10% or varying rates, or a tax on future profits could be imposed as an alternative to the proposed surcharge tax.

They added that these alternatives could raise the government's targeted revenue while minimizing the burden on the private sector.

The CCC said it had made recommendations to the finance minister to avoid applying the Surcharge Tax at group levels due to its unfair impact on smaller subsidiaries and minority shareholders.

It said this could prevent local and foreign investors from entering into joint ventures with large conglomerates.